China’s Xi Promises Policy Stability at Meeting with Business Leaders
On Monday, China’s President Xi Jinping convened a meeting with influential business leaders from the private sector, aiming to reassure them that policies governing the private sector will remain consistent. This comes amidst governmental efforts to rejuvenate an economy grappling with the impacts of the pandemic, regulatory crackdowns, and a real estate crisis.
Notably present at this meeting was Alibaba founder Jack Ma, whose company has been at the forefront of regulatory scrutiny faced by the tech industry in recent years.
In his address, Xi emphasized that the approach of the Communist Party and the government towards the private sector is integrated into the “socialist system with Chinese characteristics.” This term is used to describe the government’s governance framework. “They cannot and will not change,” Xi affirmed, allaying fears of sudden policy shifts.
Xi further articulated the government’s commitment to safeguarding the legal rights of private businesses and entrepreneurs in accordance with the law. However, he underlined that China remains a socialist country governed by law, where illegal business activities will not be tolerated and will face scrutiny and penalties.
This meeting follows Beijing’s initiation of a widespread crackdown on the tech sector in 2020, aimed at dismantling monopolies and enforcing comprehensive data regulations. The campaign significantly affected Jack Ma, who has maintained a low profile since publicly questioning the country’s regulatory and financial systems during a speech in Shanghai.
Other business titans present at the Beijing meeting included Zeng Yuqun, chairman of battery innovator CATL, Wang Chuanfu, chairman of electric car manufacturer BYD, and Pony Ma, CEO of Tencent, which owns the popular app WeChat.
Xi expressed hopes that private enterprises will continue to “get rich first, and then promote common prosperity,” referencing a program designed to spur development and diminish the wealth gap. Both Alibaba and Tencent have pledged substantial amounts toward this initiative, with Alibaba committing $15.5 billion and Tencent $7.7 billion.
Interestingly, an earlier state media report about the meeting, initially carrying details, was later revised. The initial two-paragraph report was replaced by a more concise statement, omitting the names of attendees.
Soon after, a detailed account of the meeting, which included Xi’s speech and mentioned some participants by name, was released, though Jack Ma’s name was not included in the new list.
Jack Ma, who was once among the wealthiest individuals in China, remains a central figure due to a speech in October 2020 where he critiqued regulators as overly conservative. In the wake of his remarks, the government halted plans for the initial public offering of Ant Group, an enterprise rooted in the digital payments company Alipay. Subsequently, Ant Group was compelled to restructure into multiple independent entities.
Alibaba faced its regulatory woes as well, as the company was investigated and slapped with a $2.8 billion fine for breaching antitrust laws.
