Jack Ma Returns to the Public Eye, Meeting with ***; Analysts Believe China is Preparing to Ease Restrictions on the Tech Industry to Stimulate Economic Growth

Recently, a meeting with prominent Chinese business leaders featuring Alibaba founder Jack Ma shaking hands with *** has sparked various speculations. Ma’s return to the public eye seems to suggest that Beijing authorities may reinvest in the tech sector to counteract the United States’ suppression of China. Once a globally renowned business leader and China’s richest man, Ma was the founder of Alibaba, frequently invited to speak around the world, known for his humor and popularity among young people. However, after criticizing China’s financial policies in 2020, he “disappeared” from public view.

After nearly four years of absence, Ma made a public appearance at ***’s financial seminar on Monday, prompting discussions among experts and analysts about what this means for him, as well as for China’s tech industry and overall economic development. Following the meeting, tech stocks, including Alibaba, began to rise.

On Thursday, Alibaba announced financial results that exceeded expectations, with its stock price rising over 8% by the close in New York. Since the beginning of the year, the company’s stock has increased by 60%.

Has Ma regained his status?

After Chinese state media released photos of the meeting, Chinese economic analyst Bill Bishop remarked that Ma’s attendance at the financial conference—despite not speaking but sitting in the front row and shaking hands with ***—signifies that Chinese authorities have restored his former reputation.

In 2020, during a financial conference, Ma commented that Chinese banks exhibited a “Pawn-Shop Mentality,” after which he faded from the public eye. Prior to that, he was a dominant figure in the Chinese tech industry. His critical remarks about the banks’ lack of innovation led to the cancellation of Ant Group’s $34.5 billion IPO plan. At the time, many perceived this as an attempt by Beijing to rein in a company deemed too powerful and a leader who spoke too candidly. Analysts unanimously agree that Ma’s re-emergence as a focal point, attending a seminar personally hosted by ***, is a positive sign for him.

*** told attendees at the seminar that although China’s economy faces challenges, these challenges are temporary, and businesses need to maintain confidence and continue pursuing innovation. *** stated that now is an opportune time for private enterprises and entrepreneurs to fully display their talents. This was widely interpreted as the Chinese government signaling that tech companies would regain favor.

Before Ma’s downfall, China’s tech industry faced extensive crackdowns from the authorities, grappling with the country’s control over digital assets, enforced strict data security audits, and commercial competition clauses. At that time, other private sectors, such as education and real estate, also faced scrutiny under China’s “common prosperity” goal. Some believe that this policy aimed to ensure that many major companies, like Ma’s, complied with central authority, bringing China back to the basic framework of a socialist state focused on “common prosperity” for the people. However, with Beijing’s implementation of strict new regulations, many tech companies saw their valuations plummet by billions of dollars, causing unease among international investors. Coupled with the deteriorating global economy due to the pandemic and the war between Russia and Ukraine, significant changes have occurred in China’s economic situation.

China’s current economic growth is slowing, job opportunities for the youth are scarce, and the real estate sector is in decline, with Chinese incomes significantly lower than before. The research firm Counterpoint believes that Ma’s reappearance and his meeting with Chinese leadership suggest that China has had enough of economic stagnation and may relax policies to grant private enterprises more freedom.

The emergence of the DeepSeek AI model has recently rekindled pride among the Chinese people and rapidly spread to global financial markets, with funds pouring into the Hong Kong and mainland Chinese markets, particularly in technology stocks. Goldman Sachs upgraded the outlook for Chinese stocks, stating that the rapid application of artificial intelligence could enhance corporate revenues and attract up to $200 billion in investments. The significance of this innovation lies in the fact that China’s prohibition on exporting advanced chips and technologies has inadvertently accelerated the launch of DeepSeek. With Trump potentially returning to the White House to impose tariffs and negotiate with China, *** may find it necessary to readjust its approach to China’s tech industry and entrepreneurs.

Some analysts believe that ***’s financial conference signifies China’s effort to guide investors and companies towards ***’s national policies, emphasizing “high-quality development” and “new productivity” policies aimed at socialist modernization, spearheaded by advanced semiconductors and manufacturing while reducing reliance on foreign technology, which can be understood as a new version of the common prosperity policy.

Marina Zhang, an associate professor at the University of Technology Sydney, stated that Ma’s reappearance does not indicate the end of scrutiny in the tech industry but rather signifies a shift from crackdown to controlled engagement by Beijing. While private enterprises remain a crucial pillar of China’s economy, they must align with national priorities. Following this conference, Alibaba’s stock surged, as the Chinese government continuously emphasizes innovation and confidence, potentially relaxing policies on tech companies. Analysts believe that Ma’s reemergence may be related to the urgent need for economic reform amidst slowing growth, particularly in the context of youth employment difficulties and a sluggish real estate market. Ma, once adored by young people, appears to have reconciled with ***; Alibaba seems to have received a boost, restoring investor confidence.

China needs a revival of its high-tech industry

*** emphasizes “high-quality development” and “new productivity” policies, indicating that China aims to reduce reliance on foreign AI technology and promote self-innovation, closely linking to Ma’s return and the development of Chinese tech companies. However, experts note that this does not mean an end to scrutiny of the tech sector but rather a transition to a more controlled engagement, requiring private enterprises to adhere to national priorities while adopting more liberal regulatory policies.

Ma’s return indicates a possible shift in China’s attitude towards entrepreneurs, particularly against the backdrop of slowing economic growth, suggesting the government may relax controls over the tech sector. This meeting not only restores Ma’s previously diminished reputation but also hints that China may accelerate technological innovation and lessen reliance on foreign technology. However, this change may still be primarily rooted in national interests.

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