Chinese President Xi Jinping held a rare meeting with some of the largest technology leaders on Monday, indicating that Beijing's competition with the United States is increasingly urgently supporting the industry.
XI urged attendees to “display their talents” and to be confident in the power of Chinese models and markets on a key name.
Meanwhile, there was no major Chinese tech leader in the competition – Baidu founder Robin Li triggered a sharp decline in the company's stock, once touted as China's closest competitor to OpenAI.
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Concerns about Li's absence caused Baidu to remove market value of $2.4 billion in hours as the company's stock fell as much as 8.8% in early trade before ending the day's decline by nearly 7%.
Sources told Reuters that the founder of the Beast has not yet been courting U.S. President Donald Trump at the summit.
Investors and market participants keep an eye on the presence of senior executives at important meetings, as no company leader often sparks speculation about the company’s position.
This speculation is partly rooted in unpredictable moves in the past, including years-long weakening of top tech giants. Collectively worth $1 trillion in market value.
But the carefully orchestrated pro-business rally on Monday urgently marked a shift in Beijing’s industry in the face of slowing growth, deflationary concerns and a painful technology and tariff war with the United States.
Analysts said Xi Jinping gathered business leaders, including those who have despite the pressure in the U.S. in recent months, including groundbreaking success, which underscores the importance of private sector innovation to China gaining a foundation in technology.
“This is an implicit acknowledgement that the Chinese government needs private enterprises to compete with the US technology.”
“The government has no choice but to support them if it wants to compete with the United States.”
'We need you'
Xi Jinping held a meeting in the people's etiquette hall. He held a similar meeting in 2018 when U.S. President Donald Trump’s first administration was using the same environment during the trade war.
State media said that during the reception, Xi Jinping emphasized the continuity of China's economic development strategy.
He also said that Chinese private enterprises have “broad prospects and great hopes” to create wealth and opportunities, a rare remark from socialist leaders who have doubled their “common prosperity” in recent years.
Xi Jinping also said that China's governance and its market size have inherent advantages in developing new industries.
“Now is the right time for most private businesses and entrepreneurs to show their talents,” he said.
Official estimates show that China's private sector, which competes with state-owned companies, contributes more than half of tax revenue, more than 60% of economic output and 70% of technological innovation.
Xiao Zhang, a finance professor at Tsinghua University in Beijing, said Monday’s meeting was designed to acknowledge the importance of private enterprises and try to “inject confidence.”
“I think the purpose is to tell them that we want to support you. We need you to improve innovation, technological innovation, and we need you to improve consumption,” Zhang told Reuters.
Name of attendance
Participants in the conference demonstrated recent business success stories with a wide range of public followers in China.
Huawei founder Ren Zhengfei and Byd's Wang Chuanfu sat directly in front of XI, and the picture shows the honorary seats and CHIP development of the national electric vehicle national champion.
Xiaomi's Lei Jun was also present at the conference, the celebrity CEO who pushed smartphones and appliance companies into electric cars.
Another participant was Unitree founder Wang Xingxing, whose dance human robots became very popular at a country-backed Lunar New Year party earlier this month. These robots seem to be targeting Tesla's efforts to impress Wall Street with Optimus Prime.
Other executives present included Robin Zeng of Catl, Wang Xing of Meituan, Leng Youbin of Feihe, China and Yu Renrong, founder of Will Seciconductor, National Media CCTV Video show.
Two sources familiar with the meeting said Tencent’s pony was there too.
Jack Horse Surprise
A technology leader, the most interested analyst is Alibaba founder Jack MA Withdrawing public life to a large extent He criticized China's regulatory system after integrating hot water with the authorities in his speech in 2020.
Angry Beijing IPO is planned to cost $37 billion His fintech company Ant in that year.
His business empire and the broader technology industry then targeted regulatory repression, time out It represents the reversal of the fate of China's private sector.
Analysts say Jack Ma's presence at Monday's seminar has the potential to boost confidence in Beijing.
The Hengerson Technical Index reached a three-year high in morning trading on Monday. It closed less than 1%.
- Reuters, other editors and inputs with Vishakha Saxena
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