Chinese President Xi Jinping has sent a signal of support for entrepreneurs and the private sector at a time when China’s economy is facing several headwinds. A symposium with prominent entrepreneurs marked a symbolic turning point for the country’s tech sector, which has been under heightened scrutiny.
The government is grappling with lackluster domestic consumption, a prolonged real estate slump, and external headwinds such as tariffs on its exports. However, Xi’s presence at the symposium suggests that Beijing is recognizing the significant role that China’s private sector can play in supporting growth and boosting technological capabilities.
A draft basic law focused on private sector growth has been reported by state media, which could potentially be a powerful tool to reignite optimism about renewed growth momentum in China. The law aims to optimize the development environment for the private sector and drive high-quality growth. It is estimated that the private sector contributes significantly to China’s GDP, foreign trade, fixed-asset investment, tax revenue, and urban employment.
The meeting also marked a return to form for Alibaba’s founder Jack Ma, who has been largely absent from public view since his criticism of Beijing’s regulatory system was met with resistance. The symposium attended by other prominent entrepreneurs, including Huawei Technologies’ Ren Zhengfei and Xiaomi Corp’s Lei Jun, suggests that the government is softening its approach towards large tech companies.
While the meeting may not signify a 180-degree turn in China’s control over economic policy, it reflects Beijing’s recognition of the importance of the private sector. Experts say that the symposium could restore confidence among Chinese entrepreneurs and drive investment in the country’s technology sector.
Source: https://www.cnbc.com/2025/02/17/chinas-xi-jinping-speaks-to-entrepreneurs-in-a-rare-high-profile-meeting-.html