February 17: Chinese President Xi Jinping led a meeting on Monday with Alibaba co-founder Jack Ma and other notable entrepreneurs, indicating Beijing's renewed support for the private sector following years of upheaval.
After hearing from representatives of various private companies, including billionaire Ma from Alibaba Group Holding Ltd and Xiaomi Corp's Lei Jun, Xi delivered a speech, as reported by state media. Other attendees included Meituan's Wang Xing, Unitree's Wang Xingxing, and Ren Zhengfei, co-founder of Huawei Technologies Co., who is seen as a pivotal figure in China's goal to lessen its dependence on American technology. Premier Li Qiang was also present.
The meeting with high-profile individuals had been anticipated, contributing to a rise in the nation's stock market. This summit reflects a more favorable attitude from the Communist Party toward the private enterprises that significantly contribute to the country's economic growth.
Ma was notably the most prominent victim of Xi’s 2020 crackdown on the internet and private sectors, which led to the cancellation of the highly anticipated initial public offering of Alibaba's affiliate, Ant Group Co. This incident marked the beginning of a prolonged campaign to enhance state control over the world's second-largest economy, curb the billionaire class, and redirect resources toward Xi's priorities, such as national security and technological independence. Following this, the outspoken entrepreneur largely vanished from public life.
However, recent months have seen authorities adopting a less aggressive stance as China's economy has decelerated, with companies like Alibaba aligning with Xi’s ambitions in fields such as artificial intelligence.
“This is the clearest signal China could send to enhance social confidence. The fact that Xi Jinping personally attended the meeting with entrepreneurs underscores its political importance,” stated You Chuanman, a senior lecturer at the School of Law, Singapore University of Social Sciences.
“It represents an ‘enabling policy’ rather than a complete reversal,” You added. “China has been transitioning from excessive regulation in the property market and private sector prior to COVID-19 to issuing positive policy indications for the private economy. We have observed a consistent shift in Beijing's tone towards the private sector: showing tolerance, fostering improvement, and providing encouragement.”
Optimism regarding the potential of artificial intelligence has ignited a remarkable surge in China's stock market over the past month, making the Hang Seng China Enterprises Index the top performer globally. Speculation circulating on social media about a possible meeting between Chinese officials and companies like Alibaba has further bolstered positive sentiment in recent days, propelling the tech giant's shares to their highest levels since 2022.
Liang, whose budget-friendly chatbot has propelled China towards the forefront of the AI race, participated in a private business symposium hosted by Chinese Premier Li last month. Ma, who has become increasingly prominent in recent years, delivered a speech on AI-related topics to Ant employees in December.
Alibaba’s Qwen model has excelled in official benchmark assessments, highlighting the company’s growing significance in the AI domain. Additionally, Apple Inc. is integrating its AI technology into Chinese iPhones, reflecting confidence in its expanding capabilities.
Goldman Sachs noted that “the introduction of DeepSeek-R1, along with other recently launched Chinese AI models deemed globally competitive and cost-efficient, has shifted the narrative surrounding Chinese technology, renewed investor optimism about AI’s growth and economic advantages, and contributed to the rally.”
However, it remains uncertain how much authorities intend to adjust their approach towards the private sector. A show of support from Xi could likely enhance the stock market rally and invigorate entrepreneurial spirits, but much will depend on whether authorities implement more concrete policy measures.
Few analysts expect the government to revert to its pre-2020 policies, even as it aims to bolster the economy in anticipation of a potential trade conflict with the US under President Donald Trump.
No business figure illustrates the fluctuations of China’s private sector better than Ma, the former English teacher who founded Alibaba from his lakeside apartment in 1999. Alibaba overcame foreign competitors like eBay Inc. before evolving into China’s largest corporation, establishing Ma as a titan of private industry and technological innovation.
In 2015, after Alibaba executed what was then the world’s largest initial public offering, Xi and Ma met at a US business summit that also featured foreign executives such as Tim Cook and Mark Zuckerberg. That same year, they convened at the annual government-sponsored Wuzhen gathering of internet officials and industry leaders.
However, in 2020, Ma publicly criticized the state financial sector and regulators during a Shanghai conference, which upset top officials in Beijing. Shortly after, they shocked Wall Street by halting Ant’s IPO—then the largest market debut globally—before launching an offensive against his broader business empire.
Once China’s most prominent business leader, Ma largely withdrew from public view over the subsequent years. He gradually re-emerged around 2023 with sporadic visits to the Alibaba campus, including one last week, as well as contributions to the company's internal employee forum.
A meeting with Xi could dramatically alter Alibaba's fortunes, especially after the company disenchanted investors in 2023 by announcing an ambitious plan to split into several independent sector leaders, only to abandon that strategy and replace key executives months later.
In 2024, Joe Tsai and Eddie Wu—two of Ma’s earliest associates—decided to make significant investments in AI. Alibaba's advancements in this area have enabled the company to increase its market value by over US$90 billion (RM398.9 billion) this year.