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When Beijing suddenly interrupted Ant Group’s IPO in 2020, putting an end to Jack Ma ambitions, the message was clear: no private enterprise, as powerful as it could be freed from the line of the Chinese Communist Party.
Four years later, Xi Jinping orchestrates a symbolic reversal by inviting the major figures of Chinese capitalism to an official summit. Does this gesture mark a real rehabilitation of the private sector or an opportunistic adjustment dictated by a difficult economic context?
After a limited post-Cavid rebound, Chinese growth struggles to regain its dynamism, with a GDP up 5.2 % in 2023, a modest figure compared to past performance. Real estate, formerly an economic engine, is in crisis, as evidenced by the bankruptcy of Evergrande and the persistent distrust of investors. Added to this is a deflation that weakens consumption and a climate of uncertainty weighing on entrepreneurs. At the same time, the external pressure continues to grow, in particular under the effect of American restrictions on semiconductors and Washington efforts to contain the rise in Chinese technological power. Beijing is thus found in an uncomfortable position, oscillating between the need to relaunch private investment and its desire to maintain absolute control over large companies in the People’s Republic.
The summit chaired by Xi Jinping was not limited to the symbolic presence of Jack Ma. Along the founder of Alibaba were Ren Zhengfei (Huawei), Lei Jun (Xiaomi), Wang Chuanfu (Byd) and Liang Wenfeng ( Deepseek), so many leaders embodying Chinese ambitions in artificial intelligence, electronics and electric vehicles. Xi Jinping wanted to reassure this parterre of leaders by stressing that the State would continue to encourage innovation and soften certain restrictions. He notably mentioned the revision of taxation, the desire to improve access to funding and the need to reduce regulatory obstacles that slow down technological actors in their competitiveness.
If these promises were praised by the markets, they were not enough to dissipate all the uncertainties. The Hang Seng index, which had recorded an increase in the announcement of the summit, finally closed down, a sign that investors remain cautious about the realization of these commitments. The return of Jack Ma alongside Xi Jinping, after four years of sidelining, is a strong political signal, but cannot be interpreted as a return to the era of unbridled Chinese capitalism. The former English teacher who became a tech magnate had dared to challenge the party line by publicly criticizing the Chinese financial system. Consequently, Ant Group had been forced to restructure under state supervision and Alibaba was imposed on a fine of $ 984 million. The rehabilitation of MA does not mean that he finds his freedom of action of yesteryear, but rather that he is replaced in a role compatible with the interests of power.
Since 2020, the Chinese government has implemented an increased surveillance policy for digital giants, slowing down their expansion and redefining the contours of their autonomy. Alibaba’s attempt to split his empire into several independent entities has been blocked, and strategic initiatives for large companies must now align with state priorities. Far from a liberalization, Beijing seeks above all to maintain a balance between economic dynamism and political control.
If this summit reflects an inflection in the official discourse, it does not guarantee a real relaxation. International investors await concrete gestures to assess whether this opening is sustainable. Is Beijing really willing to restore autonomy to the private sector or is this support purely cyclical?
