President Xi Jinping met with some of China's most prominent technology leaders on Monday, February 17, in the ceremonial Great Hall of the People. This rare gathering included key figures from companies that have achieved remarkable success, even amid US pressures. The meeting aimed to underscore the significance of private industry and to "inject confidence" into the sector, signaling a shift in Beijing's stance toward its tech giants.
Xi Jinping's assembly with top executives from Alibaba, Tencent, Huawei, BYD, and Xiaomi marked a significant turnaround from the regulatory clampdowns seen four years ago. The Chinese President emphasized the need for these leaders to "show their talent" and to remain confident in China's economic model and market power.
"It is the right time for the majority of private business and entrepreneurs to show their talent." – Xi Jinping
The meeting responded to pressing concerns about a slowdown in China's economic growth, compounded by efforts from the United States to curb China's technological advancements. This strategic gathering highlighted the indispensable role of the private sector, which contributes over half of China's tax revenue, more than 60% of its economic output, and an impressive 70% of technological innovation, according to official estimates.
Xi Jinping first chaired a symposium focused on the private sector in 2018, six years following his ascent to power. This recent meeting was attended by influential figures such as Jack Ma, founder of Alibaba, and Liang Wenfeng, the founder of DeepSeek. DeepSeek is a startup poised to challenge American AI ventures with its innovative and cost-effective AI models. The presence of these leaders has the potential to renew faith and confidence within China's tech sector.
This pro-business rally, meticulously orchestrated, underscored policymakers' concerns about economic growth deceleration. It was also seen as a strategic response to US-imposed tariffs that threaten to exert further pressure on China's economy. In a bid to reassure and rally the private sector, Xi highlighted how China's governance and vast market size provide an inherent advantage in cultivating new industries.
"We need you to boost innovation, technological innovation, and we need you to boost consumption" – Xiaoyan Zhang
The gathering came amid a surge in tech shares on the Hong Kong stock exchange. Recent weeks have seen increased optimism surrounding DeepSeek's AI breakthroughs and a perceived thawing in regulatory attitudes towards China's internet giants. The meeting served as a "SPUTNIK MOMENT," symbolizing a pivotal point for China's technological ambitions.
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