Chinese President Xi Jinping’s Meeting with Business Leaders

On a recent Monday, President Xi Jinping of China took centre stage at a symposium attended by esteemed business magnates, including Alibaba’s co-founder Jack Ma, as reported by state media. This gathering occurred amidst concerns over China’s slowing economy and the increasing tensions with the United States.

Private Sector Representation

Among the notable attendees were the likes of Huawei’s founder, Ren Zhengfei, Xiaomi’s Lei Jun, Wang Xing of Unitree, and BYD’s Wang Chuanfu. Furthermore, Robin Zeng of CATL and Tencent’s Pony Ma were present, the latter being confirmed by an anonymous source due to the private nature of the meeting. It’s worth noting that Tencent did not promptly respond to a comment request. This roster of attendees highlights a substantial representation of China’s vibrant private sector.

Objectives and Background

According to reports by Reuters, Xi intended to utilise this symposium as a platform to invigorate the sentiments of the private sector. Given the intensifying technological rivalry between China and the U.S., Xi’s plan was to inspire business heads to both bolster domestic operations and foray into international markets. This strategic move aims to counteract the pressures exerted by export controls on semiconductors imposed by Washington, a cause for concern due to their potential military applications by Beijing.

Xi Jinping’s Vision

President Xi has persistently championed the cause of self-sufficiency in semiconductors within China. Central to his vision is the harnessing of artificial intelligence to fuel economic growth. However, these aspirations are not without their challenges, particularly with the restrictive measures enforced by foreign powers concerned about China’s growing tech prowess.

"The government has no choice but to support them if it wants to compete with the U.S." expressed Christopher Beddor, deputy director at Gavekal Dragonomics in Hong Kong. This sentiment echoes the Chinese administration’s implicit reliance on the private sector to sustain competitiveness in the global arena.

Symposium Significance

Xi Jinping initially chaired a prominent symposium for the private sector back in 2018, promising tax cuts and a fair business landscape. Once more, he pledges financial facilitation as he addresses the captains of industry, encouraging a robust expansion beyond national borders.

The innovative potential of DeepSeek’s AI platform has also stirred excitement among investors, prompting discussions about re-evaluating the worth of Chinese tech assets. However, Gary Ng, a senior economist at Natixis, warns of potential risks. He remarks, "Despite the rising opportunities in the case of DeepSeek, it is also about guiding the private sector in the government-led direction and containing the potential risks to compete with the U.S."

Future Prospects and Challenges

At the symposium, President Xi, having listened to the perspectives of private enterprises, delivered his speech. Details about this discourse remain sparse, except for a video shared by CCTV. Nevertheless, the predominant focus appears to be nurturing a constructive dialogue to encourage ongoing development within China’s private sector.

The regulatory landscape, however, remains a "black box," according to Ng. With most AI innovations arising from private ventures, uncertainties regarding future regulatory frameworks pose a challenge. "We cannot entirely rule out the outcome of a tighter-than-market-expected regulatory environment than we see now," Ng cautioned. As China continues navigating these complexities, the synergy between its government and private sector will likely deepen.