Why Xi's symposium with private entrepreneurs matters

For the first time in nearly seven years, Chinese President Xi Jinping convened a high-level symposium on private enterprises on Monday. The meeting brought together influential business leaders from cutting-edge technologies and key industries, underscoring the country's steadfast support for the private sector. The event cast spotlight on the country's focus on building up industrial prowess and firm support for innovation-driven growth. All these messages from this symposium mean a great deal for the Chinese economy, which is at a critical stage of development as it strives to battle headwinds including insufficient domestic demand and rising protectionism abroad.

Why now?

The timing of this symposium carries great weight. It came just weeks ahead of this year's "two sessions," or the annual sessions of China's national legislature and national political advisory body in March, where the country's annual economic growth target, along with other key policy measures for growth and reform, will be announced. In particular, subsequent top design and supportive measures on the private sector and technological innovation could also be unveiled.

Meanwhile, China has been witnessing a resurgence of business confidence in technology and culture realms in recent months, with remarkable breakthroughs in AI, exemplified by the rise of DeepSeek, and Ne Zha 2 having become the highest-grossing animated film globally. Economic sentiment among Chinese consumers and businesses is improving, and global forecasts for China's growth potential have been revised upward. Entrepreneurs are eager for more policies that foster innovation and ensure stability.

Internationally, the geopolitical landscape is changing. With the new U.S. administration taking the reins, a new wave of technological and trade tensions is on the horizon. China's relationship with key global players -- such as EU, Britain and Japan -- is also evolving. All this presented both challenges and opportunities for Chinese enterprises.

Held at this moment, the symposium further helped counter skepticism about the vitality of China's private sector or the country's commitment to supporting private enterprises and reassure private entrepreneurs of an even more promising future.

Key takeaways

At the symposium, Xi delivered a clear message to China's private sector:

1. Unwavering support for private enterprises

The basic principles and policies of the Party and the country regarding the development of the private sector have been incorporated into the system of socialism with Chinese characteristics, and will be consistently upheld and implemented. These principles and policies cannot and will not be changed.

The Party and country ensure that economic entities under all forms of ownership have equal access to factors of production in accordance with the law, compete on a level playing field, and are protected by the law as equals.

2. Acknowledging challenges and strengthening confidence

The difficulties and challenges currently faced by the private sector in its development generally emerged during the process of reform, development, and industrial transformation and upgrading. They are localized rather than widespread, temporary rather than long-lasting, and surmountable rather than unsolvable.

On the new journey of the new era, the private economy has broad development prospects and immense potential, and it is the perfect time for private companies and entrepreneurs to fully demonstrate their prowess.

Despite the difficulties and challenges, it is important to see the path forward, the light ahead and the future, stay committed to development, bolster confidence, and maintain an enterprising spirit.

3. Measures to support private businesses

Eliminating barriers to fair competition; expanding private sector access to competitive industries; addressing financing difficulties for private firms; resolving overdue payments owed to private enterprises; strengthening legal protections and cracking down on excessive fees, fines, and inspections; implementing targeted relief policies with precision and fairness.

An eye-catching guest list

The selection of attendees underscored China's emphasis on technological innovation and new quality productive forces. They included:

Ren Zhengfei (Huawei): A first-time attendee at such a high-level private-sector meeting, Huawei's relentless drive for technological self-reliance has made it a symbol of China's resilience against U.S. tech sanctions.

Jack Ma (Alibaba): Making a rare public appearance, Ma's e-commerce empire has reshaped Chinese retail and empowered millions of small businesses.

Pony Ma (Tencent): Ma has built an empire spanning social media, gaming, cloud computing, and AI. His creation, WeChat, is an indispensable part of daily life for over a billion users.

Zeng Yuqun (CATL) & Wang Chuanfu (BYD): Leading China's charge in electric vehicles and battery technology, their companies rival global new energy giants.

Wang Xing (Meituan): Revolutionizing how Chinese consumers access food delivery, travel, and local services through digital platforms.

Liang Wenfeng (DeepSeek) & Wang Xingxing (Unitree Robotics): Representing China's rising AI and robotics industries, positioning the country as a key player in next-generation technologies.

Lei Jun (Xiaomi): Expanding beyond smartphones, Xiaomi's recent foray into electric vehicles has been met with strong market reception.

Yu Renrong (Will Semiconductor): A key player in China's semiconductor industry, vital for national technological self-sufficiency.

This lineup sends a powerful message: China's future lies in high-tech, advanced manufacturing, and digital transformation.

The appearance of entrepreneurs of key platform businesses signaled renewed recognition by central authorities of the sector's vital role. Following a period of regulatory adjustments, platform enterprises have emerged with reinforced importance to employment stability and technological innovation.

Beyond the digital economy, the presence of leaders from high-tech manufacturing also highlights China’s continued emphasis on manufacturing. The country has remained the world’s leading manufacturing powerhouse.

Additionally, the meeting saw participation from those in modern agriculture and other traditional industries, such as Leng Youbin (Feihe) and Liu Yonghao (New Hope Group), as well as those specializing in niche sectors like financial trusts, steel structures, and pipeline products. This reflects the government’s comprehensive support for private sector development.

A pillar of China's economic future

Since the launch of reform and opening up over four decades ago, private enterprises have been the backbone of China's economic dynamism and innovation. Today, they account for over 92% of all businesses and an equal share of high-tech enterprises.

Chinese leaders view private enterprises as a driving force behind the country's high-quality development and a crucial component of the country's long-term strategic goals. The data speaks for itself: in the first three quarters of 2024, 2.72 million new private enterprises emerged in innovative industries and business models, accounting for 40% of all newly established private firms. This rapid expansion illustrates the dynamic and evolving nature of China's private economy, cementing its position as a cornerstone of national progress.

As China moves forward, its private entrepreneurs will play an indispensable role in shaping the future and fuel its long-term prosperity in an ever-changing world.