Beijing, China – February 5: Chinese President Xi Jinping attends a meeting with the Pakistani president Asif Ali Zardari (not illustrated) in the great people’s room on February 5, 2025 in Beijing, China.
Wu Hao | Getty Images News | Getty images
Chinese President Xi Jinping delivered a speech in a closed -door symposium with eminent entrepreneurs on Monday, according to state mediareporting private sector support at a time when the country’s economy was faced with several opposite winds.
The presence of XI to the symposium sends a “very clear signal of high -level support” to entrepreneurs, Peiqian Liu, an economist in Asia in Fidelity International told CNBC: “This will probably revive the animal spirit and optimism on renewal growth in China. “
“It could potentially be even more powerful than the budgetary stimulus, if political decision -makers show more decisive support for the development of the technological sector in China,” added Liu.
Beijing has sought to strengthen its economy caused by dull domestic consumption, a prolonged real estate crisis and external opposite winds such as prices on its exports.
Reunion could mark “a symbolic turning point for the Chinese technology sector after years of in -depth examination,” said Lynn Song, chief economist in LNG, stressing the time of this meeting stressed the urgency of Beijing in Go up the private sector in the midst of an economic discomfort and external risk rate.
This could mean that “the regulatory overhang that we have been over for two years is over,” said Andy Maynard, Managing Director and Chief of Actions for China Renaissance.
Separately, the CGTN state media reported That Chinese legislators “deliberate a project from the first fundamental law of the country focused on the growth of the private sector”.
“The law will be of great importance to further optimize the development environment of the private sector and stimulate high quality growth,” said the report.
He stressed that the private sector has contributed to more than 60% of Chinese GDP, 48.6% of foreign trade, 56.5% of investment with fixed assets, 59.6% of tax revenue and more than 80% urban employment.
“The fast growing sector has played an important role in promoting technological innovations and stabilization of economic growth,” said the report.
The founder of Alibaba, Jack Ma, was one of the entrepreneurs present in Reunion, according to a video clip published by Chinese State Media.
The frank businessman remained mainly outside the eyes of the public since the Chinese authorities scuttled a first initial public offer of the affiliate group of the Alibaba Ant Group group in November 2020, after his public criticisms of the regulatory system of the enraged country Beijing.
The return of MA to the spotlight could strengthen the expectation that Beijing softened its approach to large technological companies, said Maynard.
The other entrepreneurs who attended the meeting included Ren Zhengfei, founder and chief executive officer of Huawei Technologies, Lei Jun, founder and CEO of the consumer electronics Xiaomi Corp, Wang Xing, founder of the food delivery giant Meituan, with BYD car manufacturer managers and contemporary amperex technology co.
“You can never underestimate the power of such a meeting” by simply restoring the confidence of Chinese entrepreneurs, who had practiced caution so as not to “walk on the wrong foot or direct a path that could be something [Beijing] I don’t like it, “said Sam Radwan, founder of the International Enhance Consulting Company.
Beijing launched a regulatory storm against major technological companies in the country at the end of 2020 to fear that they will become too large and powerful.
Although the symposium does not mean “a 180 degree turn” of China control over the direction of its economic policy, it reflects Beijing recognition of the important role that the Chinese private sector can play to support growth and increase the Technological capacities within the framework of China restrictions by restrictions by Western nations, Alfredo Montufar-Helu, China Center head to the reflection group, the conference board of directors, told CNBC.
The CSI 300 index of continental China has been little changed as a result of the news.
The Hang Seng Tech index, which had jumped more than 5% on Friday on Reunion media reports, has widened the losses to lower more than 2% after the meeting.
The release of the Chinese startup Deepseek of a cutting -edge AI model contributed to led to a gathering on the country’s stock market in the last month, which caused calls to an increase in shares. The low profile founder of Deepseek, Liang Wenfeng, would have been invited to Reunion.
