Xi Jinping meets Jack Ma and business leaders in rare show of support

China’s leader signals backing for private enterprises as economy faces challenges, but skepticism remains.

Jack Ma, second from left, attends a meeting in Beijing with other Chinese business leaders, presided over by Xi Jinping on Monday. © Central Television

By Alana Salsabila and Anna Fadiah

Chinese President Xi Jinping held a high-profile meeting with top business leaders on Monday, including Alibaba founder Jack Ma, marking a rare public appearance for the entrepreneur since Beijing’s crackdown on private enterprises began in 2020. The meeting, attended by executives from major firms such as Huawei, Xiaomi, CATL, and BYD, comes at a time when China’s economy is struggling with property sector woes, weak consumer confidence, and rising geopolitical tensions with the United States.

The gathering, which was widely publicized by state media, appeared to be a strategic move by Xi to reassure private entrepreneurs of their role in China’s economic future. During the meeting, Xi urged business leaders to “have ambition to serve the country,” emphasizing the private sector’s role in advancing China’s technological ambitions.

This event marked the first time Xi has met with corporate leaders since former U.S. President Donald Trump imposed tariffs on Chinese imports. The private sector has been sidelined in recent years as Xi’s government prioritized state-owned enterprises in a push for economic self-reliance. Reports of the meeting had sparked optimism among investors, suggesting that Beijing might shift its approach to private businesses.

Market reaction and investor sentiment

Investor sentiment has been volatile amid speculation that Xi’s engagement with business leaders signals a policy shift. Hong Kong’s Hang Seng Index initially rallied on Monday but ended the day slightly down, while mainland Chinese stocks edged up by 0.25 percent.

Much of the recent market optimism has been driven by the emergence of DeepSeek, a Chinese artificial intelligence startup that developed a powerful AI model using relatively few computing resources. DeepSeek’s founder, Liang Wenfeng, was also present at Monday’s meeting, underscoring China’s focus on innovation in the face of U.S. technological restrictions.

On Chinese social media, the meeting became one of the most discussed topics on Weibo, with speculation centered on Jack Ma’s attendance. Ma has largely stayed out of the public eye since Beijing blocked the $34 billion initial public offering of Ant Group, Alibaba’s financial affiliate, in 2020. The move, seen as a response to Ma’s public criticism of China’s regulatory environment, was a turning point in Beijing’s crackdown on private businesses.

A symbolic gesture or real policy shift?

The meeting’s optics suggest a shift in tone, but analysts remain skeptical about whether it will translate into tangible policy changes for private enterprises. Fred Hu, founder of Hong Kong-based investment firm Primavera Capital, called the meeting a symbolic “course correction,” but noted that the private sector has been severely impacted by political and regulatory measures in recent years.

“Jack Ma’s attendance signals that successful private entrepreneurs will be respected rather than penalized,” Hu said. However, Alibaba did not issue a statement about Ma’s participation in the event.

Xi has made similar gestures before. In 2018, he hosted a high-profile meeting with business leaders, vowing unwavering support for private enterprises. Yet, in the years that followed, Beijing tightened regulations on industries ranging from real estate to private education, imposed heavy fines, and even detained high-profile executives. These measures have fueled uncertainty among business owners and foreign investors alike.

Local governments, facing mounting debt, have resorted to imposing fines and seizing assets from private companies to generate revenue. This has only exacerbated concerns about the government’s treatment of private enterprises.

Xi’s promises and China’s economic realities

During Monday’s meeting, Xi acknowledged these concerns and pledged to curb arbitrary enforcement actions against private businesses. “Law enforcement supervision should be strengthened, and arbitrary charges, fines, inspections, and seizures should be addressed to genuinely protect the legal rights and interests of private enterprises and entrepreneurs in accordance with the law,” he said.

While Xi’s remarks may offer some reassurance, economic experts argue that more concrete steps are needed to rebuild business confidence. Beijing’s recent announcement of a $1.4 trillion bailout plan for local governments has been criticized as insufficient to address the country’s deeper economic challenges.

Despite the high-profile nature of the meeting, many remain unconvinced that China’s private sector will see meaningful policy shifts. Jack Ma’s reappearance may be a carefully staged signal, but whether it marks a genuine turning point for Chinese businesses remains uncertain.

“The reality is that the private sector is valued only when the government needs growth or economic stability,” said Chen Zhiwu, a finance professor at the University of Hong Kong. “Once the economy stabilizes, private business owners could find themselves sidelined again.”

As China navigates economic headwinds and a delicate balance between state control and market forces, the true impact of Xi’s outreach to business leaders will become clearer in the months ahead.