In a significant development poised to reshape China's economic landscape, Alibaba founder Jack Ma made a notable public appearance at a symposium presided over by Chinese President Xi Jinping. The event, held in China, aimed at steering the nation towards "socialist modernisation" by 2035, focusing on elevating living standards and fostering an economy driven by advanced manufacturing. Amidst the backdrop of a global pandemic and geopolitical tensions following Russia's invasion of Ukraine, China's economic challenges have been pronounced. Ma's presence at this forum has ignited widespread discussions about the future trajectory of China's tech industry and economic policy.
Jack Ma, who co-founded Alibaba over two decades ago with a group of friends in his apartment, has become one of the most influential figures in China's technological sphere. His journey from a modest online marketplace to building one of the largest tech conglomerates in the country has been remarkable. However, Ma's withdrawal from public life in 2020 after criticizing China's financial sector — leading to the abrupt cancellation of Ant Group's $34.5 billion stock market flotation — marked a period of retreat from the public eye. His reappearance at the symposium has therefore sparked keen interest among experts and analysts alike.
The symposium's focus on innovation and growth was underscored by President Xi Jinping's call for companies to remain confident and drive forward despite the prevailing economic challenges. The arrival of DeepSeek's disruptive R1 artificial intelligence model has been described by observers as a "Sputnik moment," symbolizing a pivotal technological advancement. This aligns with the Chinese government's emphasis on policies promoting "high-quality development" and "new productive forces."
Richard Windsor, director of technology at research firm Counterpoint, noted that the Chinese authorities might have "had enough of stagnation and could be prepared to let the private sector have a much freer hand." This sentiment is echoed by market analysts at Citi, who emphasized the significance of sectors like internet, tech, AI, and electric vehicles, stating:
"The [guest] list showcased the importance of internet/tech/AI/EV sectors given their representation of innovation and achievement."
Moreover, they added:
"It likely indicates the importance of technology… and the contribution of private enterprises to the development and growth of China's economy."
Amidst this backdrop, investment in Chinese stocks, particularly tech companies listed in Hong Kong and mainland China, has been on the rise. Goldman Sachs recently upgraded its outlook for Chinese stocks, forecasting that rapid AI adoption could significantly boost company revenues and attract up to $200 billion in investment. Alibaba's AI chatbot, DeepSeek, has emerged as one of the most downloaded applications globally following its release.
However, the road ahead is not without challenges. The Chinese government has implemented stringent new regulations on the tech industry, resulting in a crackdown on certain companies. These measures are part of broader common prosperity policies aimed at ensuring that customers and workers have greater influence over how firms operate and distribute their earnings.
Marina Zhang, associate professor at the University of Technology Sydney, commented on Ma's resurgence:
"Rather than marking the end of tech sector scrutiny, [Jack Ma's] reappearance suggests that Beijing is pivoting from crackdowns to controlled engagement."
She further highlighted:
"While the private sector remains a critical pillar of China's economic ambitions, it must align with national priorities – including self-reliance in key technologies and strategic industries."
The symposium also reflected a shift in governmental attitude towards private enterprises. Lei Jun, chief executive of consumer electronics giant Xiaomi, spoke about the necessity for ongoing "care and support" from the state towards these entities.
On social media platform Weibo, users expressed enthusiasm for Ma's return. One user remarked:
"Congratulations [Jack] Ma for the safe landing."
Another user noted:
"The comeback of [Jack] Ma is a shot in the arm to the current Chinese economy."