President Xi Jinping held a pivotal meeting with top Chinese entrepreneurs, highlighting Beijing’s strong backing for the private sector, especially tech innovation. President Xi reassured attendees of unwavering support, pledging to address financing challenges and promote fair competition. Prominent figures like Jack Ma and Ren Zhengfei attended, symbolizing the sector's vital role in China’s economic progress. The event emphasized fostering innovation, improving governance, and boosting confidence amid U.S.-China tensions. Analysts view the meeting as a positive signal for private enterprise growth and collaboration.
President Xi Jinping hosted a landmark gathering with China’s top business leaders on Monday, marking the first such meeting since 2018. The event, widely anticipated by industry stakeholders, underscored Beijing’s robust commitment to the private sector, particularly the technology industry.
Speaking at the meeting, President Xi reaffirmed the government’s unwavering support for the private economy, emphasizing its integration into the socialist system. "These policies will not change," President Xi stated, according to Xinhua. He assured entrepreneurs of continued market access and government assistance while urging them to drive technological innovation amid intensifying competition with the United States. "It is the right time for private enterprises and entrepreneurs to showcase their talents and make significant contributions," he added.
Prominent figures such as Jack Ma, founder of Alibaba Group; Lei Jun, CEO of Xiaomi; Pony Ma Huateng, CEO of Tencent; Wang Chuanfu, CEO of BYD; and Ren Zhengfei, CEO of Huawei Technologies, attended the event. Their presence highlighted the importance of private enterprises in shaping China’s technological and economic trajectory.
President Xi pledged to further open competitive infrastructure sectors to diverse market participants and address challenges such as financing difficulties faced by private firms. He described these challenges as temporary and resolvable, emphasizing their root causes in reform and industrial upgrades. "Difficulties and challenges facing the private economy ... are temporary, not long-term ones. They can be overcome," he remarked.
The president also called for enhanced corporate governance, urging companies to establish clear and fair operational practices, manage risks effectively, and nurture future leaders. He reiterated the necessity of upholding the law, stating, "Any illegal activities by enterprises, regardless of ownership type, must be thoroughly investigated and addressed." he emphasized the need to remove obstacles to fair competition and ensure equal legal access to production factors.
The symposium sent a strong message of support to private enterprises. Su Yue, principal economist for China with the Economist Intelligence Unit (EIU), noted that the selection of attendees reflected Beijing’s prioritization of economic growth over security concerns. Among the participants were leaders from various industries, including Zeng Yuqun of battery giant CATL, Leng Youbin of baby formula supplier Feihe, and Liang Wenfeng of AI start-up DeepSeek. These figures represent companies that have driven innovation and aligned with global standards, safeguarding China’s industrial supply chain.
The meeting marked President’s first high-profile interaction with business leaders since 2018, a period when concerns about the private sector were mounting. While recent regulatory crackdowns and geopolitical tensions have dampened investor confidence, the government has introduced measures to promote and protect private businesses. He emphasized the need to resolve issues such as delayed payments to private firms and arbitrary fees imposed by local governments. "We must strengthen law-enforcement oversight and effectively protect the legal rights and interests of private enterprises," he said.
Ding Shuang, chief Greater China economist at Standard Chartered Bank, called the meeting "a promising signal," indicating official recognition of private businesses’ contributions to technological progress.
Zhang Zhiwei, president of Pinpoint Asset Management, described the event as "a clear signal that the government would like to encourage the private sector to play a more important role in technological innovation." He highlighted the increased representation of tech leaders compared to 2018. Regular engagement between the government and private enterprises, Zhang suggested, could boost economic confidence.
China’s private investment saw a slight decline of 0.1% in 2024, with its share of fixed-asset investment dropping from 56.42% in 2019 to 50.08% last year. However, advancements in technology, particularly by domestic AI companies like DeepSeek, offer a new pathway for sustainable growth and renewed investor optimism. Tang Dajie, a senior researcher at the China Enterprise Institute, noted that the symposium’s focus on innovation and restoring confidence among private enterprises was unsurprising given the current economic climate.
The meeting also comes amid escalating trade tensions with the United States. Recent tariff exchanges and export controls have intensified rivalry between the two nations, particularly in the tech sector. Companies like DeepSeek and leading robotics firms have become symbols of China’s innovative strength in this global competition. Su Yue of EIU remarked, "The competition between the two countries in the technology sector will be the most intense and is bound to shape the trajectory of their economic strength."
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