XI Jinping hugs the private sector: China's tech revolution starts new!

XI Jinping hugs the private sector: China's tech revolution starts new!

In a surprising turn of events, China's President Xi Jinping merged in Beijing on Monday with leading heads of the private sector, including prominent CEOs such as Ren Zhengfei von Huawei and Wang Chuanfu from BYD. This meeting, which has been considered XI’s first meeting of this kind since 2018, signals a remarkable change of course in Chinese economic policy, which has been shaped by strict regulations against private companies in recent years, as reported krone.at . The assembly took place in the middle of a continuing economic flaut, which obviously recognized the need to mobilize private companies for economic recovery and technological progress.

A new course for private business commitment

The declining investments and the increasing difficulties of the private sector in China have moved XI to rethink its strategy. According to NZZ.CH Restrictive measures and laws considerably restricted the scope for action of private companies. Xi's invitation to Jack Ma, the controversial founder of Alibaba, was particularly remarkable because Ma returned from the political stage after a long absence; This is considered a sign that the government is willing to reconcile with the private sector.

Another example of the innovative strength of the Chinese private sector is the software Deepseek, which recently caused a sensation because it embodies powerful AI technologies and does not need significantly fewer resources. The scope of Xi's new strategy could have a potentially impact on the leading technologies and economic development of China if private companies are activated on this curve and emphasizes their resources, such as krone.at , in the creation of new value. However, it remains to be seen whether this turnaround will bring the hoped -for upswing or whether the company bosses are only fed with lip service.