China’s President Xi Jinping meets with non-public enterprise leaders in Beijing

China’s President Xi Jinping has attended a symposium on non-public enterprises, official information company Xinhua stated on Monday (February 17, 2025), a uncommon transfer that comes as Beijing grapples with a slowing financial system and rising tensions with america.

The Xinhua report stated Mr. Xi delivered a speech after listening to representatives of personal firms. The report didn’t present any particulars in regards to the symposium, held within the Nice Corridor of the Folks in Beijing, together with who the attendees had been from non-public enterprises.

Reuters reported on Friday (February 14, 2025), citing sources, Mr. Xi deliberate to chair a symposium to spice up non-public sector sentiment on Monday (February 17, 2025) that might be attended by the nation’s enterprise leaders, together with Alibaba co-founder Jack Ma.

“The symposium can be aimed toward boosting private-sector sentiment, and Mr. Xi was anticipated to encourage firm chiefs to increase their companies domestically and internationally amid an intensifying China-U.S. expertise conflict,” the sources had stated.

Mr. Xi first chaired a high-profile symposium for the non-public sector in 2018, six years after he got here to energy. On the time, he pledged tax cuts and a stage taking part in area whereas reaffirming that non-public companies would have entry to monetary backing.

The symposium additionally comes as DeepSeek’s AI platform has triggered investor hypothesis about its potential to buoy China’s broader tech sector, resulting in requires an upward repricing of Chinese language belongings.

Mr. Xi has lengthy careworn the necessity for China to attain self-sufficiency in semiconductors and needs the nation to make use of AI to drive financial growth.

However China’s efforts have been hampered by export management measures on chips imposed by Washington which is frightened Beijing might use superior semiconductors to spice up its navy capabilities.

“It’s a tacit acknowledgement that the Chinese language authorities wants private-sector companies for its tech rivalry with the U.S.,” stated Christopher Beddor, deputy China analysis director at Gavekal Dragonomics in Hong Kong. “The federal government has no selection however to help them if it desires to compete with the U.S.”

Tech shares in Hong Kong have roared greater in current weeks on a mix of optimism in regards to the DeepSeek AI breakthrough and a thawing of authorities’ strategy to web giants.

The index hit a three-year excessive in morning commerce on Monday (February 17, 2025), having rallied on Friday (February 14, 2025) after Reuters reported Mr. Xi was to chair Monday’s (February 17, 2025) symposium. It was broadly regular shortly after state media reviews on his speech on Monday, February 17, 2025.

What’s the importance of Xi’s assembly with non-public enterprises?

Reuters reported final week that the symposium is aimed toward boosting private-sector sentiment, and Mr. Xi was anticipated to encourage executives to increase their companies domestically and internationally amid a deepening China-U.S. expertise conflict.

Right here’s what individuals are saying in regards to the assembly:

FRED HU, FOUNDER & CHAIRMAN, PRIMAVERA CAPITAL GROUP, HONG KONG:

“President Xi’s assembly with Chinese language non-public entrepreneurs clearly represents a serious course correction in China’s insurance policies in the direction of non-public companies. The non-public sector, lengthy the spine of the Chinese language financial system and a very powerful development engine, has been battered lately by mounting coverage and regulatory uncertainties, with dire penalties to China’s financial system, and worse, to its labour market with rising youth unemployment.

“The management’s well-publicised assembly with a number of the nation’s most high-profile entrepreneurs, corresponding to Jack Ma, couldn’t come at a extra vital juncture and would doubtless dispel many, if not all, of the lingering doubts in regards to the nation’s coverage orientations. It ought to assist reassure rattled entrepreneurs and carry up enterprise/investor confidence in China.”

TOM NUNLIST, ASSOCIATE DIRECTOR AT POLICY RESEARCH CONSULTANCY TRIVIUM CHINA:

“The tech crackdown has been definitively over for a while and the federal government has been attempting to push elevated confidence for the non-public sector, and tech sector particularly.

“There’s been some continued scepticism as a result of on the finish of the day it’s Xi Jinping’s opinion that issues most. You can’t do higher than having Xi Jinping personally give the nod of approval. I feel it took so lengthy to have this assembly as a result of Xi is altering course.”

XIAOYAN ZHANG, CHAIR PROFESSOR OF FINANCE AND ASSOCIATE DEAN AT PBC SCHOOL OF FINANCE, TSINGHUA UNIVERSITY, BEIJING:

“I feel the assembly’s goal is to guarantee that the non-public sector understands, for the steadiness and for the expansion of the financial system, they’re a vital a part of the financial system.

“I feel the aim is to inform them ‘we need to help you. We’d like you to spice up innovation, technological innovation, and we’d like you to spice up consumption’. I feel (the aim is) to inject confidence in there.”

GARY NG, SENIOR ECONOMIST FOR NATIXIS, HONG KONG:

“Regardless of the rising alternatives within the case of DeepSeek, it is usually about guiding the non-public sector within the government-led route and containing the potential dangers to compete with the U.S.

“The market reads it as a optimistic sign to incorporate Jack Ma in such a gathering and hope for the tip of the tech crackdown. Nonetheless, the regulatory surroundings is the black field. As most AI growth occurs within the non-public sector, we can not totally rule out the result of a tighter-than-market-expected regulatory surroundings than we see now.”

CHRISTOPHER BEDDOR, DEPUTY CHINA RESEARCH DIRECTOR, GAVEKAL DRAGONOMICS, HONG KONG:

“I feel it’s a tacit acknowledgement that the Chinese language authorities wants private-sector companies for its tech rivalry with the U.S. Policymakers would in all probability want if industrial-policy planning and state-owned enterprises had been in a position to make modern breakthroughs on the technological frontier.

“However the disruptive improvements are coming from private-sector firms. The federal government has no selection however to help them if it desires to compete with the U.S. His (Jack Ma’s) presence can be massively symbolic of how the federal government’s stance in the direction of the tech sector has modified. If there’s one particular person related to the tech crackdown, it’s Jack Ma.

“As for the sign – we’ve seen Xi run this playbook earlier than. He clearly desires to ship a message that the federal government is now supportive of the tech sector, and in flip instil confidence amongst tech entrepreneurs. It’s kind of a complete reversal of the coverage stance from a couple of years in the past, when officers vowed to curb the “disorderly” enlargement of capital.”

ALFREDO MONTUFAR-HELU, HEAD OF THINK TANK THE CONFERENCE BOARD’S CHINA CENTER:

“After DeepSeek, Beijing is exhibiting it understands that innovation and development from the non-public sector, particularly tech firms, is the easiest way ahead for financial development.”