Xi Jinping brings together Titans of Technology in China

The Chinese president has gathered the biggest names in technology for the first time since 2018, promising support to the private sector and charging innovation in the country

President Xi Jinping organized a meeting with China’s main entrepreneurs on Monday (17)-the first meeting of this type since 2018-in a highly awaited event that signaled Beijing’s clear support to the private sector, especially the technology industry.

Government’s central principles and policies for the private economy, which are firmly integrated into the socialist system, will remain stable and unshakable, Xi said, according to state agency Xinhua.
“These policies will not change,” he said.

According to SCMP, while guaranteeing the main Chinese entrepreneurs the continuing government support and greater market access, Xi urged them to contribute more to the country’s technological innovation amid growing rivalry with the United States.

“This is the right time for private companies and entrepreneurs to show their talents and make significant contributions,” said XI.

Among those present were Jack MA, founder of Alibaba Group; Jun Law, Founder and CEO of Xiaomi; Pony Ma Huateng, founder and CEO of Tencent; Wang Chuanfu, President and CEO of the BYD electric car manufacturer; and Ren Zhengfei, founder and CEO of Huawei Technologies. Alibaba is the owner of South China Morning Post.

The president also promised to advance the opening of competitive infrastructure sectors for various market agents and make great efforts to resolve financing difficulties and the high costs faced by private companies.

“The difficulties and challenges faced by the private economy arose mainly mainly in industrial reforms and updates… They are temporary, not long term. They can be overcome, ”said Xi.

Companies need to improve their management to ensure clarity and equity, the president explained, noting that this includes organizing how shareholders work together, closely monitor the company’s internal operations and ensure that they can manage risks.

Companies should also invest in developing future leaders, he added.

“Any illegal activity by companies, regardless of the type of property, must be investigated and treated rigorously,” said XI.
Everything that the party’s central committee decides must be firmly implemented, without commitment, has been quoted by saying.

“We must resolutely remove all obstacles to the egalitarian and legal use of production factors and fair participation in market competition,” added Xi.

Although the Symposium has transmitted government support to companies, its main importance lies in sending a signal to more private companies, according to Su Yue, chief economist to China at Economist Intelligence Unit (EIU).

“The selection of companies also reflects that development remains the main priority of Beijing, rather than prioritizing security over growth,” said Su.

Other business figures present at the Symposium included Zeng Yuqun, president of the catl battery giant; Leng Youbin, President and CEO of the Formulas Formulas Fehe; NAN CUNHUI, President of Electrical Device Manufacturer Zhejiang Chint Electrics; Wang Xingxing, Founder of the Unique Robotics Company; Liu Yonghao, President of Animal New Hope Ration Producer; and Yu Renrong, founder and president of Will Semiconductor.

Also present at the meeting were Prime Minister Li Qiang, Wang Huning-head of China’s leading political advisory body-and Ding Xuexiang, vice-prime minister responsible for technological development.

Guests and their companies were leaders in their respective sectors or played a crucial role in protecting China’s industrial supply chain through technological innovation, SU said. Some also made significant progress to align Chinese business practices with international standards.

China’s investment in high technology production

% accumulated growth, year by year

Although other employees and parliamentary groups regularly meet entrepreneurs, the last time Xi participated in a meeting with business executives at this level of visibility was in November 2018, another period when concerns about the state of the country’s private sector were widespread.

Trust between entrepreneurs and investors in China has been warm amid a slow domestic economic recovery, increasing geopolitical tensions with the US and previous regulations that punished some of the country’s largest corporations – including Alibaba – on the grounds of combating monopolistic behaviors.

Although Beijing has made several attempts to strengthen business feeling last year, promulgating new laws to promote and protect the private sector, these efforts were often harmed by contradictory actions of local authorities.

Some localities, lacking in revenue after a drop in land sales, began to penalize companies with heavy fines – an action that received strong criticism from central authorities.

“Efforts should focus on solving the problem of payments due to private companies,” said XI, according to CCTV.

“We must strengthen the supervision of law application, focus on the correction of fees, fines, inspections and arbitrary seizures and effectively protect the legal rights and interests of private companies and entrepreneurs in accordance with the law.”

The reappearance of Jack Ma at the high level meeting is seen as the most promising sign by the market, said Ding Shuang, chief economist for Greater China at Standard Chartered Bank. The founder of Alibaba has maintained a discreet profile since the end of 2020, when Beijing suspended the initial public offering of the Fintech Ant Group subsidiary.

“[Ele] It is still widely seen as a representative of the private sector and innovation, ”said Ding. “This meeting is also an official recognition of the contribution of private companies to boost technological innovation.”

Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, also called Monday’s meeting “a clear sign that the government would like to encourage the private sector to play a more important role in technological innovation” as more Participants were from the technology sector compared to the 2018 event.

More regular communications like this would increase confidence in the economy, Zhang added.

Private investment in China fell 0.1% in 2024 compared to the previous year. Its proportion in the total fixed investments fell to 50.08% at the end of last year, compared to 56.42% at the end of 2019.

However, rapid technological advances – recently represented and remarkable by the artificial intelligence startup Deepseek – have provided policy formulators a new way for sustainable economic growth and given to investors reasons for renewed enthusiasm. Liang Wenfeng, founder and CEO of Deepseek, was also present at Monday’s meeting.

“The theme of this symposium, without surprise, is to strengthen scientific and technological innovation and further restore the confidence of private companies,” said Tang Dajie, senior researcher at Think Tank Tank Private Institute of Companies in China.

These success stories have gained greater importance as a new trade war with the US seems inevitable. After Trump impose 10% rates on all Chinese products earlier this month, Beijing retaliated with 10 to 15% rates over certain products and greater export control over critical minerals.

DeepSek and China’s leading robotics companies have highlighted the extensive rivalry between Beijing and Washington about the future of global technology, becoming symbols of the innovative potential of East Asian power.

“Interestingly, during Trump’s inauguration, many technology industry leaders were also present. The competition between the two countries in the technology sector will be the most intense and will certainly shape the trajectory of its economic strength, ”said SU, from EIU.

Although action markets in Hong Kong and Continental China rose on Friday with the news of the Symposium, there was some correction until the closing of business on Monday, with the CSI 300 rising 0.21% and the Hang Index SENG FALLING 0.02%.