A recent meeting between Chinese President Xi Jinping and top business leaders has generated excitement. Alibaba founder Jack Ma attended the event, marking a rare public appearance. His presence has led to speculation about China’s tech sector and economic policies.

Jack Ma’s Absence and Return

Jack Ma, once a leading business figure, withdrew from public life in 2020. He had criticized China’s financial system, which led to government scrutiny. Now, his return to the public eye has revived discussions about his role in China’s business landscape.

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Stock Market Reacts Positively

Investors responded quickly to Ma’s appearance. Tech stocks, including Alibaba, saw a surge. On Thursday, Alibaba reported strong financial results. Its stock jumped over 8% in New York trading and has gained 60% since the year began.

Signals of Rehabilitation

Analysts are analyzing the significance of Ma’s presence. Bill Bishop, a China expert, noted, “Jack Ma’s attendance, his seating in the front row, even though he did not speak, and his handshake with Xi are clear signs he has been rehabilitated.” Many on social media celebrated his return.

Ma’s Past and Government Crackdown

Ma was a symbol of China’s tech boom. He built Alibaba from scratch and became one of the richest people in the country. However, in 2020, his criticism of China’s financial institutions led to the cancellation of Ant Group’s massive stock offering. The government then launched a broader crackdown on private tech firms.

Xi Jinping’s Message to Businesses

At the meeting, Xi Jinping urged businesses to innovate and stay confident. He assured them that China’s economic challenges were “temporary” and “localized.” His words signaled a shift in government policy, encouraging private enterprises to play a stronger role in economic growth.

Impact on the Tech Industry

The government’s earlier crackdown imposed strict regulations on tech firms. It also targeted private companies in sectors like education and real estate. These measures were part of the “common prosperity” campaign, aimed at redistributing wealth. However, they wiped billions off company values and hurt investor confidence. Now, Xi’s message suggests a more supportive approach toward businesses.

A Strategic Shift Amid Global Challenges

China’s economy faces multiple challenges, including slow growth and reduced consumer spending. Rumors of Ma’s attendance at the meeting sparked hope. Analyst Richard Windsor suggested Ma’s return signals that China’s leadership “had enough of stagnation and could be prepared to let the private sector have a much freer hand.”

US Sanctions and China’s Response

The meeting came after a major tech breakthrough. DeepSeek, a Chinese AI company, recently launched a powerful AI model. This development led to a surge in Chinese tech stocks. It also raised concerns in the US about China’s growing AI capabilities. Some believe US sanctions on advanced technology forced China to innovate.

Xi’s New Economic Vision

Xi Jinping now emphasizes “high-quality development” and “new productive forces.” He aims to shift the economy toward advanced industries like semiconductors, clean energy, and AI. By 2035, China wants to achieve “socialist modernization” with higher living standards and reduced reliance on foreign technology.

Controlled Engagement with the Private Sector

Experts believe China is adjusting its approach. Marina Zhang, an associate professor at the University of Technology Sydney, said, “Rather than marking the end of tech sector scrutiny, [Jack Ma’s] reappearance suggests that Beijing is pivoting from crackdowns to controlled engagement.” The private sector remains crucial, but it must align with national goals.

Jack Ma’s return signals a possible policy shift. The government may now support private businesses while ensuring they follow national priorities. Investors and analysts will closely watch future developments to see how China balances economic control and business growth.