João da Silva
Journalist
Video surveillance
A meeting between Chinese President Xi Jinping and some of the country’s main business leaders this week fueled excitement and speculation, after the founder of Alibaba, Jack Ma, was photographed during the event.
The charismatic and colorful M. Ma, who was one of the most eminent businessmen in China, withdrew from public life after criticizing the Chinese financial sector in 2020.
His reappearance during the Monday event sparked a wave of discussions, with experts and analysts wondering what it means for him, the technological sector of China and the economy in general.
The answer was extremely positive – technological actions, including those of Alibaba, gathered shortly after the event.
Thursday, the electronic commerce giant announced financial results that beat expectations, the actions ending the day of negotiation in New York more than 8% more. The company’s shares have increased by 60% since the start of the year.
So, what do analysts read in the appearance of Mr. Ma at the event alongside other high -level guests – including the founder of Deepseek Liang Wenfeng?
Is Jack “rehabilitated”?
Analysts began to seek clues to the meaning of the meeting as soon as the Chinese state media began to publish photos of the event.
“The attendance of Jack Ma, his seats in the front row, even if he did not speak, and his handshake with XI is clear signs that he was rehabilitated,” wrote Chinese analyst Bill Bishop.
Social media was in excitement with users praising Mr. MA for his return to public spotlights.
“Congratulations (Jack) MA for secure landing,” said a user on the Chinese social media platform Weibo.
“The return of (Jack) Ma is a shot in the arm of the current Chinese economy,” said another.
It is not surprising that observers have attached so much meaning to an appearance of Mr. Ma.
Before his disappearance of public life in 2020 – as a result of comments at a financial conference that Chinese state banks had a “wages” – MA was the poster for the technological industry of the China.
Reuters
Analysts say that Mr. MA’s return could report a change in policy to the technological sector
A English teacher without computer experience, Mr. MA co -founded Alibaba in his apartment more than two decades ago after convincing a group of friends to invest in his online market.
He continued to build one of the largest technological conglomerates in China and has become one of the richest men in the country.
It was before his comment as a “pledged lender”, when he also deplored the “lack of innovation” in the banks of the country.
This led to the cancellation of its stock market flotation of $ 34.5 billion (27.4 billion pounds Sterling) by Ant Group, its financial technology giant.
This was considered at the time as an attempt at Beijing to humiliate a company that had become too powerful and a chef who had become too frank.
Analysts agree that the fact that he is back under the spotlight, during a symposium where Xi Jinping himself presided, is a very good sign for Mr. Ma.
A certain caution, however, that the fact that he did not appear among the speakers can show that he has not fully returned to the exalted status which he once enjoyed.
In addition, the lack of coverage that his presence received in the Chinese media seems to confirm that it has not been completely rehabilitated.
Is repression against the technological industry finished?
Xi Jinping told Symposium participants that their companies had to innovate, develop and remain confident despite China’s economic challenges, which he described as “temporary” and “located”.
He also said that it was “good time for private companies and private entrepreneurs to fully display their talents”.
This has been largely interpreted as the government saying to private technological companies that they are also back in good graces.
The fall of Mr. Ma Ma had preceded a broader repression of the Chinese technological industry.
Companies have been faced with a much closer application of data and competition security rules, as well as state control over significant digital assets.
Other companies in the private sector, ranging from real estate education, have also ended up being targeted in what has become the “Prosperity Common” campaign.
The measures implemented by common prosperity policies have been considered by some as a means of braking billionaire owners of some of the largest Chinese companies, to give place to customers and workers more by word to say about operation companies and the distribution of their income.
But as Beijing has imposed new difficult regulations, billions of dollars have been deleted from the value of some of these companies – many of them technological companies – international investors.
This, as well as the worsening of the global economy affected by the pandemic as well as the invasion of Ukraine by Russia, has contributed to considerable changes in the economic situation of China.
Growth has slowed down, jobs for young people in the country have become rarer and, in the midst of a slowdown in the real estate sector, people do not spend enough.
While the rumors that Mr. Ma was going to attend the Monday meeting began to spread, the same is true for a glimmer of hope. Richard Windsor, Director of Technology of the Research Company, Counterpoint, said that the presence of Mr. MA would be a sign that China leadership “had enough stagnation and could be ready to let the private sector have a Much much freer “.
In addition to Mr. Ma and Mr. Liang, the guest list also included key figures for companies such as telecommunications and the Huawei smartphones company, the electric vehicle giant (EV) byd and many others from all technological sectors and industrialists.
“The list (guests) has presented the importance of the Internet / Tech / AI / EV sectors taking into account their representation of innovation and success,” said a note from Citi market analysts.
“(TI) probably indicates the importance of technology … and the contribution of private companies to the development and growth of the Chinese economy.”
The people present in Reunion seemed to share this feeling. Lei Jun, the director general of the general public electronics Xiaomi, told State Media that he felt the president’s “care and support” for companies.
Is it because of American sanctions?
The symposium took place after the country experienced what some observers have described as a “sputnik moment”: the arrival of the Deepseek disturbing artificial intelligence model (IA) at the end of last month.
Shortly after its release, the Chinese manufacturing chatbot increased in the ranks to become one of the most downloaded in the world. He also triggered a sudden sale of the main American technological actions, while fears rose on American leadership in the sector.
Back in China, the global success of the application sparked a wave of national pride which quickly extended to the financial markets. The investment has been poured into Chinese actions – in particular those of technological companies – listed in Hong Kong and in continental China.
The giant of investment banks, Goldman Sachs, has also improved his prospects for Chinese shares, saying that the rapid adoption of AI could increase business revenues and attract up to $ 200 billion in investment.
But the greatest meaning of this innovation has been that it came after the fact that Deepseek had to innovate due to the ban on the export of chips and advanced technologies in China.
Xinhua
Now, with Trump back to the White House and his affection of commercial prices, Mr. Xi may have deemed necessary to recalibrate his approach to Chinese entrepreneurs.
Instead of a return to an unregulated growth era, some analysts think that Monday’s meeting reported an attempt to lead investors and businesses to the national priorities of Mr. XI.
The Chinese president has increasingly highlighted the policies that the government has described as “high quality development” and “new productive forces”.
These ideas were used to reflect a passage of what was previously rapid growth engines, such as property and infrastructure investment, to high-end industries such as semiconductors, clean energy and AI.
The objective is to reach “socialist modernization” by 2035 – a higher standard of living for everyone and an economy motivated by advanced manufacturing and less depends on imports of foreign technologies.
Mr. XI knows that to get there, he will need the private sector on board.
“Rather than marking the end of examination of the technological sector, the reappearance (Jack Ma’s) suggests that Beijing is pivoting the repression of controlled engagement,” an associate professor at the University of Technology Technology, Marina Zhang.
“Although the private sector remains a critical pillar of China’s economic ambitions, it must align with national priorities – including autonomy in key technologies and strategic industries.”
