President Xi Jinping held a rare meeting with top tech leaders on Monday, including Alibaba’s Jack Ma, urging them to “show their talent” and leverage China’s market and governance model to drive innovation. The meeting marked a shift in Beijing’s stance toward tech giants, moving away from the regulatory clampdown of recent years to emphasize the importance of private-sector innovation amidst a slowing economy and U.S. technological pressures.
Xi’s message highlighted the role of private businesses in fueling China’s technological advancements, with estimates showing that the private sector contributes over 60% of the nation’s economic output and 70% of its tech innovation. Attendees included figures from major firms like Huawei, BYD, Xiaomi, and Meituan. Notably, Baidu and ByteDance executives were absent, causing a stir among investors.
The meeting underscored the Chinese government’s reliance on private firms to compete globally, especially in AI and electric vehicles. Participants, such as DeepSeek’s Liang Wenfeng, whose AI model threatens U.S. ventures, were highlighted as part of China’s growing tech prowess.
The event echoed Xi’s 2018 meeting during the U.S.-China trade war, where he promised support for the private sector, including tax cuts and financial backing. This time, analysts believe the goal was to boost confidence, particularly with Ma’s return to the public eye, signaling Beijing’s shift towards fostering innovation and increasing domestic consumption to bolster economic growth.
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