Chinese President Xi Jinping met with leading private sector figures, including Alibaba co-founder Jack Ma, amid economic challenges like a real estate crisis and high youth unemployment. This meeting, held at the Great Hall of the People, signifies a potential shift in Ma’s government relations after his past criticisms led to significant repercussions. Despite a recent surge in Alibaba’s stock, the Chinese economy faces hurdles, including possible new tariffs from the U.S., complicating its recovery from the pandemic.
Xi Jinping Meets with Business Leaders Amid Economic Challenges
In light of an economic slowdown, Chinese President Xi Jinping convened a pivotal meeting on Monday with prominent private sector leaders, a notable highlight being the re-emergence of Jack Ma, the co-founder of Alibaba, one of the largest e-commerce platforms in the world.
Since Xi Jinping’s rise to power over a decade ago, there has been a clear focus on bolstering state-owned enterprises within China’s vast economy. He has frequently cautioned against the ‘disorderly’ growth of the private sector, which has raised concerns among business leaders.
Critical Timing for the Chinese Economy
This meeting comes at a crucial juncture as China grapples with a slowing economy, characterized by a significant real estate crisis, weak consumer spending, and high youth unemployment rates. Just a week prior, there were reports suggesting a forthcoming gathering between Xi and key business figures, emphasizing the urgency of addressing these economic challenges.
The event took place at the Great Hall of the People, a historic venue in central Beijing typically reserved for significant political and diplomatic events. Footage from state television shows Jack Ma standing and applauding alongside other attendees as Xi entered the hall, signaling a possible shift in Ma’s relationship with the government after a prolonged period of low public visibility.
Jack Ma’s previous remarks critical of financial regulators in 2020 had led to a series of repercussions, including the suspension of Ant Group’s record initial public offering (IPO). This event raised alarms among regulators due to Ant’s expansion into personal lending, wealth management, and insurance sectors.
Despite his reduced visibility in recent years, Jack Ma remains a significant figure within Alibaba, although he no longer leads the company. His current endeavors focus on philanthropy and rural education, reflecting his personal passions. Notably, Alibaba’s stock has surged over 40% since January, with quarterly results expected to be announced soon.
Other influential leaders at the meeting included Ren Zhengfei, the founder of Huawei, and Wang Chuanfu, the founder of BYD, a major electric vehicle manufacturer. While state media aired parts of the meeting, they did not provide immediate details on the discussions that took place.
As China continues to recover from the pandemic’s economic impact, it recorded a 5% growth last year, one of its slowest rates in decades. The nation may soon face additional hurdles, particularly with the potential for new tariffs from the United States under President Donald Trump, who has already increased tariffs on Chinese imports. This escalating trade tension adds further complexity to the challenges faced by the Chinese economy.