In a significant meeting with key business leaders on Monday, China’s President Xi Jinping reassured private sector figures, including Alibaba founder Jack Ma, that the government’s policies toward private businesses will remain stable. This assurance comes as Beijing seeks to revitalize an economy severely impacted by the pandemic, regulatory crackdowns, and a real estate crisis.
Xi emphasized that the Communist Party’s stance toward the private sector has become integral to China’s “socialist system with Chinese characteristics,” a term used to describe the country’s governance framework. “These policies cannot and will not change,” Xi said, highlighting the government’s commitment to protecting the legal rights of private businesses. However, he also underscored that companies must operate within the law, warning that illegal activities would face investigation and punishment.
This meeting, which was broadcast by state-run CCTV, followed years of stringent regulatory actions by Beijing, including a 2020 crackdown targeting the tech sector to curb monopolies and enforce stricter data regulations. Jack Ma, who has largely remained out of the public eye since criticizing the country’s financial systems and regulators in a 2020 speech, was one of the most prominent figures affected by these actions.
In addition to Ma, other influential leaders in attendance included Zeng Yuqun, Chairman of CATL, the world’s largest battery manufacturer, Wang Chuanfu, CEO of electric vehicle giant BYD, and Pony Ma, CEO of Tencent, the company behind WeChat. During the meeting, Xi urged private businesses to continue generating wealth, contributing to China’s broader goal of “common prosperity” by addressing income inequality. Alibaba and Tencent have already pledged billions toward this initiative.
Interestingly, state media initially released a brief report of the meeting, only to delete it shortly after. A revised statement later included Xi’s remarks, but notably omitted Jack Ma’s name. This further fueled speculation regarding Ma’s relationship with the government, especially after his controversial remarks in 2020 that led to the suspension of Ant Group’s IPO and the restructuring of its business.
The meeting reflects a broader push by the Chinese government to stabilize the economy, provide reassurance to the private sector, and reassert control over influential tech giants like Alibaba and Tencent. However, how these policies unfold will be crucial to both the recovery of the economy and the ongoing relationship between the government and private enterprises in China.
