Xi meets China's tech giants as Beijing pushes for self-reliance

Xi Jinping hosts top Chinese tech leaders in a push for innovation and economic recovery.

A giant screen displays news footage of Deepseek founder Liang Wenfeng and Tencent's Pony Ma attending a symposium on private enterprises at a shopping complex in Beijing, China, on February 17, 2025. Photo by Florence Lo/Reuters

By Alana Salsabila and Clarisa Sendy

When President Xi Jinping convened a rare meeting with business leaders in 2018, those given front-row seats were from a diverse range of industries, many of them relatively unknown to the public. Seven years later, the lineup has shifted dramatically, reflecting Beijing’s urgent focus on technological self-reliance and economic revival amid intensifying competition with the United States.

On Monday, Xi gathered top executives from China’s leading tech firms, including Huawei, Alibaba, Tencent, Xiaomi, and electric vehicle maker BYD, along with AI startup DeepSeek. These companies, many of which have faced scrutiny abroad, now play a crucial role in Beijing’s strategy to advance innovation, secure supply chains, and sustain economic growth.

"The lineup of entrepreneurs suggests that Xi's priority for the private sector is to support his goals of achieving technological self-reliance and supply-chain security," said Neil Thomas, a fellow at the Asia Society Policy Institute’s Center for China Analysis.

This shift marks a stark contrast to 2018 when China’s economy was still growing steadily, and geopolitical tensions had yet to reach today’s levels. Back then, the meeting included executives from smaller firms such as software engineering company Neusoft and auto parts manufacturer Wanxiang. While Tencent and Baidu were present, they were not given the prominence they now hold.

Xi signals shift in private sector engagement

During the meeting, Xi encouraged business leaders to "show their talent" and expressed confidence in China’s economic model. He also emphasized the importance of ensuring fair competition between private enterprises and state-owned companies.

“The new lineup of entrepreneurs that Xi met with represents the cutting-edge technology that Beijing wants to see succeed in driving new economic growth,” said Paul Triolo, a partner at DGA-Albright Stonebridge Group.

As Beijing works to revive an economy struggling with a prolonged property market slump and weak consumer spending, its renewed focus on the private sector is seen as a strategic shift. Analysts believe Xi is rallying the country’s business sector to counter external pressures rather than fundamentally changing the state’s approach to economic management.

"It's a recognition from the Party leadership that, despite their preference for a state-centric economy, private companies can play a major role in China’s strategic priorities, particularly in building technological self-reliance," said Alfredo Montufar-Helu, head of The Conference Board's China Center.

Executive seating signals influence in Beijing’s plans

The seating arrangements at high-level meetings in China often indicate a company’s standing with the government. Huawei founder Ren Zhengfei and BYD’s Wang Chuanfu sat directly opposite Xi, underscoring their prominence in China’s tech and industrial ambitions.

Jack Ma, founder of Alibaba, and Pony Ma of Tencent, both previously at the center of China’s regulatory crackdown on tech firms, were also seated in the front row. Meituan founder Wang Xing, however, was positioned in the second row, suggesting a slightly lower priority in Beijing’s economic strategy.

The presence of Jack Ma, who had largely withdrawn from public life after Chinese authorities halted the IPO of his fintech firm Ant Group in 2020, was widely seen as a sign of his rehabilitation within China’s business elite. Another notable figure was Liang Wenfeng, the founder of DeepSeek, whose AI advancements have recently gained global attention.

However, the absence of Baidu’s founder at the meeting sent shares of the search engine company sharply lower on Monday, highlighting the market’s sensitivity to Beijing’s signals.

China moves to solidify private sector support

To reinforce its commitment to the private sector, China’s National People's Congress Standing Committee is set to review a draft of the Private Economy Promotion Law during a meeting scheduled for February 24-25. The legislation is expected to pass and aims to provide legal protections ensuring equal treatment for private enterprises.

“The symposium and the ‘Private Economy Promotion Law’ will have a positive impact on private sector confidence,” said Professor Zhu Tian of the China Europe International Business School in Shanghai. “But to sustain its impact, a more forceful fiscal and monetary stimulus policy is also required to pull China’s economy out of its current deflationary spiral.”

Markets react cautiously to Beijing’s signals

Investors responded positively to the meeting, interpreting it as an indication that Beijing is easing its regulatory stance on tech giants. However, given previous policy shifts, there remains caution in the market.

“We think President Xi's support for innovation industries, ongoing macro policy support, and improved operating performance will be crucial drivers of China’s tech sector outperformance,” analysts at UBS Wealth Management said in a note to clients.

On Tuesday, Hong Kong’s Hang Seng Tech Index reached a three-year high, while Alibaba’s stock rose 2% after state broadcaster CCTV aired footage of Xi shaking hands with Jack Ma.

Despite the positive signals, analysts caution that China’s broader economic recovery will require more than just government support for tech firms. A combination of policy stimulus, improved consumer confidence, and long-term economic reforms will be necessary to ensure sustained growth.