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Xi Jinping’s Call for Innovation: A New Chapter for China’s Private Tech Sector
Xi urges Chinese tech leaders to harness the country’s market potential for innovation as U.S. pressure rises. With economic challenges, private businesses are vital for China’s future growth.
ND
by News Desk
2025-02-17
Xi Jinping’s Call for Innovation: A New Chapter for China’s Private Tech Sector

President Xi Jinping gathered China’s leading tech figures, including Alibaba founder Jack Ma, for a meeting aimed at reigniting confidence and innovation within the country's private sector. The meeting, held on February 12, marks a shift in China’s approach to its technology industry, moving away from a strict regulatory clampdown to fostering growth amidst a fragile economy and U.S. technological rivalry.

Xi's remarks underscored his belief in China's economic model and the crucial role of private businesses in driving technological advancements. “It is the right time for the majority of private businesses and entrepreneurs to show their talent,” he stated, emphasizing the market's vast potential and the importance of private-sector innovation in competing with global tech leaders like the United States.

The private sector in China, responsible for over half of tax revenue and more than 60% of economic output, has faced challenges amid weakening domestic consumption and rising geopolitical tensions. Analysts, like Christopher Beddor from Gavekal Dragonomics, note that Xi's call is a tacit acknowledgment that private companies are vital for China’s tech rivalry with the U.S.

Participants and Attendees
Among the tech leaders at the meeting were Huawei’s Ren Zhengfei, BYD’s Wang Chuanfu, and Xiaomi’s Lei Jun, as well as newer startups like DeepSeek. Notably, DeepSeek has made waves with its AI breakthrough, drawing comparisons to a "Sputnik moment" for China’s tech landscape.

However, the absence of some major players, including Baidu and ByteDance executives, raised questions. Baidu’s stock dropped significantly following the news of its lack of representation at the event.

The meeting also highlighted successful innovations such as Unitree’s humanoid robots, which have gained significant attention after their performance at the CCTV Lunar New Year Gala. The event’s aim was not only to showcase China’s emerging tech but also to foster a sense of confidence and support within the private sector, especially in the face of mounting international pressure and internal economic struggles.

Xi’s Pro-Business Stance
The gathering, held in the Great Hall of the People, mirrors a similar symposium hosted by Xi in 2018, where he emphasized tax cuts and financial backing for private businesses. This year, experts like Xiaoyan Zhang from Tsinghua University see Xi's meeting as an effort to reinvigorate innovation and consumption to boost economic recovery.

With U.S. tariffs and technological sanctions weighing heavily on the Chinese economy, Xi’s latest appeal to the private sector is viewed as an essential step toward overcoming stagnation and solidifying China’s position in the global tech race.
Tagged:

XiJinping

Innovation

ChinaTech

PrivateSector
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