What does Jack Ma’s return to Spotlight in China mean?

After Alibaba founder Jack Ma was depicted at the event, this week, a meeting between Chinese President Xi Jinping and some leading business leaders of the country put up enthusiasm and speculation.

Karishmai and Colorful Mr. Ma, who was one of the most prominent businessmen in China, withdrew from public life after criticizing China’s financial sector in 2020.

Experts and analysts have surprised what this means for them, the technical sector of China and the economy in general.

The response has been very positive – technical stocks including Alibaba, railing immediately after the event.

On Thursday, e-commerce giant reported financial results, defeating expectations, with more than 8% shares ending Trading Day in New York. The company shares are 60% above the beginning of the year.

So what analysts along with other high -profile guests are reading in the presence of Mr. Ma at the event – including Deepsek founder Liang Wenfeng?

Analysts started searching for clues about the importance of the meeting, as soon as the Chinese state media started releasing photos of the incident.

Chinese analyst Bill Bishop wrote, “The appearance of Jack Ma, his seating in the front row, even though he did not speak, and his handshake with XI is a clear indication that he has been rehabilitated.”

Social media was praising Mr. Ma for returning to public spotlight with users.

“Congratulations (Jack) MA for safe landing,” said a user on Chinese social media platform Weibo.

“(Jack) Ma’s return is a shot in hand to the current Chinese economy,” another said.

It is surprising that observers have attached so much importance to an appearance by Mr. Ma.

Before disappearing from public life in 2020 – after comments at a financial conference that the Chinese state -owned banks had a “pawn -dukan mentality” – Mr. Ma was a poster boy for China’s technical industry.

An English teacher with no background in computing, Mr. Ma Alibaba co-established in his apartment More than two decades ago after persuading a group of friends to invest in their online marketplace.

He went to build one of the largest technical groups in China and became one of the richest men in the country.

This was before his “pawn shop” comment, when he also emphasized “lack of innovation” in the country’s banks.

This inspired its $ 34.5BN (£ 27.4bn) stock market floating to the ANT Group, their financial technology giants to cancel.

It was seen by Beijing at the time as an attempt to humble a company that became very powerful, and a leader who became very vocal.

Analysts agree that the fact that he is back into the spotlight, in a seminar where Xi Jinping presided over himself is a very good sign for Mr. Ma.

Some caution, however, the fact that he was not among the speakers, may show that he has not fully returned to the exaggerated position he had enjoyed once.

In addition, their presence received in Chinese media outlets shows the lack of coverage that they have not been fully rehabilitated.

Xi Jinping told the participants in the seminar that despite China’s economic challenges, their companies needed to grow, grow and save from confidence, which they described as “temporary” and “localized”.

He also said that it was “the right time for private enterprises and private entrepreneurs to showcase their talent completely”.

The government has widely interpreted to tell private technical firms that they are also good experienced.

The collapse of Mr. Ma had done a widespread rift on China’s technical industry.

Companies faced a lot of tight enforcement for state control over data security and competition rules as well as important digital assets.

Other companies in the private sector, from education to real estate, ended even after being known as “General prosperity” campaign.

Measures taken by general prosperity policies were seen by some people as a way to rein in billionaire owners of some of the largest companies in China, inste We do.

But as soon as Beijing imposed difficult new rules, billions of dollars were erased from the value of some of these companies – many of them – tech firm – international investors.

This, with a deteriorating global economy, was influenced by the epidemic, and was affected by Russia’s invasion of Ukraine, contributing to considerable changes in China’s economic condition.

Development has slowed down, jobs have become more rare for the youth of the country and, amidst the recession of a property sector, people are not spending enough.

As rumors that Mr. Ma started attending Monday’s meeting, there was a glimpse of Asha. Richard Windsar, director of technology at the research firm counterpoint, stated that Mr. Ma’s presence would be a sign that under the leadership of China, “had sufficient stagnation and the private sector could be designed to give a very independent hand”.

Apart from Mr. Ma and Mr. Leiang, the list of guests also included the telecom and smartphone firms Huawei, Electric-Vehicle (EV) veteran Beed, and the major figures of many others from Tech and Industrial Area.

“(Guest) list demonstrated the importance of Internet/Tea/AI/EV sectors, which, looking at its representation of innovation and achievement, said by a note from the city.

“(This) probability indicates the importance of technology … and the contribution of private enterprises for the development and development of China’s economy.”

The people present in the meeting used to share that feeling. Consumer electronics giant Xiaomi’s Chief Executive Lei June told the state media that he felt the “care and support” of the President for businesses.

The seminar occurred after the country’s experience as to what some observers described as “Sputnic Moments”: the arrival of the Dipsek’s disruptive R1 Artificial Intelligence (AI) model later in the end of last month.

Soon after its release, Chinese became one of the most downloaded in the world through AI chatbot ranks. It also triggered a sudden sale of major American technical stocks, as there was a possibility of the US leadership in the region.

Back to China, the global success of the app has created a wave of national pride that has quickly spread to the financial markets. Investment is putting in Chinese stocks – especially among technical companies – listed in Hong Kong and mainland China.

Investment banking giant Goldman Sachs has also upgraded its approach to Chinese stocks, stating that rapid AI adoption can promote the revenue of companies and attract $ 200 billion investment.

But the biggest significance of this innovation was that it came as a result of Deepsek to innovate due to the ban on export of advanced chips and technology for China.

Now, with Trump at the White House and with his hobby of business tariffs, Mr. Xi would have found necessary for Chinese entrepreneurs to reconstruct his approach.

Instead of returning in the era of irregular development, some analysts believe that Monday’s meeting indicated Mr. Xi’s attempt to run investors and businesses towards national priorities.

The Chinese Presidents are rapidly emphasizing policies that the government has referred to as “high quality development” and “new productive forces”.

Such ideas have been used to reflect a switch that were already sharp drivers of development, such as property and infrastructure investment, high-end industries such as semiconductors, clean energy and AI.

The goal is to achieve “socialist modernization” by 2035 – high living standard for all, and less dependent on the import of an economy and foreign technology run by advanced manufacturing.

Mr. Xi knows that to reach there, he will need the private sector completely on the board.

Marina Zhang told the BBC, “Instead of marking the end of the technical sector investigation, (Jack Ma’s) re -appear, it suggests that Beijing is pivying from Crackdown to controlled engagement.”

“While the private sector remains an important column of China’s economic ambitions, it should align with national priorities – including self -sufficiency in major technologies and strategic industries.”