What does Jack Ma’s return to the public spotlight mean?

A meeting between Chinese President Xi Jinping and some of the most important business leaders in the country this week has caused excitement and speculation after Alibaba Jack Ma founder was depicted at the event.

The charismatic and colorful g -n Ma, who was one of the most famous businessmen in China, withdrew from public life after criticizing China’s financial sector in 2020.

His re -appearance of the event on Monday caused a wave of discussions, with experts and analysts wondering what it means to him, the technology sector of China and the economy as a whole.

The answer is extremely positive – technological stocks, including those of Alibaba, gathered shortly after the event.

On Thursday, e-commerce giant reported financial results that won expectations, with the shares ending with a New York trade day with more than 8% higher. The company’s shares have increased by 60% since the beginning of the year.

So, what are the analysts who read the appearance of the event, along with other high -profile guests – including the founder of Deepeek Liang Venfen?

Analysts began to look for clues for the importance of the meeting as soon as the Chinese state media began to take pictures of the event.

“Jack Ma’s visit, his place to sit in the front row, although he does not speak, and his XI hands are clear that he has been rehabilitated,” China’s analyst Billian Bill.

Social media were offensive to consumers who praise for his return to the public spotlight.

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

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

Not surprisingly, the observers have attached so much importance to the appearance of G -n.

Prior to his disappearance of public life in 2020 – after comments from a financial conference that state banks in China have a “pawnshop mentality”, the boy was the boy for the Posters for the technology industry in China.

English teacher with no experience in calculations, g -n ma Co -founder Alibaba in his apartment More than two decades ago, after convincing a group of friends to invest in their online market.

He continued to build one of the largest technological conglomerates in China and become one of the most rich men in the country.

It was before his comment on a pawnshop when he also complained “the lack of innovation” in the country’s banks.

This led to its cancellation of its $ 34.5 billion stock market (£ 27.4 billion) by Ant Group, its financial technology giant.

At that time, this was seen as Beijing’s attempt to humble a company that became too powerful and a leader that became too honest.

Analysts agree that the fact that he returned to the spotlight, the symposium in which his Jinping himself has chaired is a very good sign of d -Ma.

However, some caution is that the fact that he is not among the speakers may show that he has not completely returned to the exalted status he has ever enjoyed.

Also, the lack of reflection that its visit, received in the Chinese media, seems to confirm that it is not fully rehabilitated.

Xi Jinping told participants in the symposium that their companies need to innovate, grow and remain confident despite China’s economic challenges, which he described as “temporary” and “localized”.

He also said it was “the right time for private businesses and private entrepreneurs to fully show their talents.”

This is widely interpreted as the government tells private technology companies that they are again in good grace.

The decline of G -n Ma had preceded a broader repression of China’s technology industry.

The companies have come to face a much tougher application of data security and competition security rules, as well as state control over important digital assets.

Other private sector companies ranging from education to real estate were also ultimately aimed at what became known as the common prosperity campaign.

Copper measures introduced by general prosperity policies are regarded by some as a way to benefit from the owners of the billionaires of some of the largest companies in China instead of giving customers and workers more than the word in the way companies They work and distribute their revenue.

But since Beijing has imposed difficult new provisions, billions of dollars have been deleted from the value of some of these companies – many technology companies – shake international investors.

This, along with the deteriorated global economy, which was affected by the pandemic, as well as by the invasion of Russia in Ukraine, has contributed to significant changes in China’s economic situation.

Growth is slowed, jobs for young people in the country have become more close, and against the background of the decline in the property sector, people do not spend enough.

Since rumors that G -n Ma will attend the meeting on Monday, they began to spread and a glimmer of hope. Richard Windsor, director of technology at the Counterpoint research firm, said that the presence of G -n MA will be a sign that China’s leadership “has enough stagnation and can be ready to allow the private sector to have a much more free hand” ” S

In addition to Mr. Ma and Mr Liang, the list of guests also included key figures from companies such as telecommunications and Huawei smartphone company, giant electric vehicle BYD (EV) and many more of the entire technological and industrial sector.

“The list (guests) showed the importance of the Internet/technological/AI/EV sectors, presenting their presentation of innovation and achievements,” said a note to market analysts at CITI.

“(This) probably shows the importance of technology … and the contribution of private enterprises to the development and growth of China’s economy.”

The attendees of the meeting seem to share this mood. Lei Jun, the CEO of the Consumer Electronics Giant Xiaomi, told the state media that he felt the “care and support” of the president for business.

The symposium took place after the country experienced what some observers defined as “the moment of Sputnik”: the arrival of the destroying model of the R1 Artificient Intelligence (AI) of Deepeek at the end of last month.

Shortly after its exit, the Chinese AI chatbot has risen through the ranks to become one of the most strained in the world. It also caused a sudden sale of major American technological actions, as fears are created over the US leadership in the sector.

In China, the global success of the app sparked a wave of national pride, which quickly spread to the financial markets. Investments flow into Chinese actions – especially those of technology companies – listed in Hong Kong and continental China.

Investment banking giant Goldman Sachs has also upgraded its prospects for Chinese shares, saying that fast AI acceptance could strengthen companies’ revenue and attract up to $ 200 billion in investment.

But the most important of this innovation was that it emerged as a result of the fact that Deepseek had to innovate due to the ban on the export of advanced chips and technologies to China.

Now that Trump has returned to the White House and his attachment to commercial tariffs, he may have found it necessary to calibrate his approach to China’s entrepreneurs.

Instead of returning to an era of unregulated growth, some analysts believe that the meeting on Monday signals an attempt to direct investors and businesses to national priorities.

The Chinese president is increasingly emphasizing the policies that the government calls “high quality development” and “new productive forces”.

Similar ideas were used to reflect the transition from what were previously rapid growth engines, such as investment in property and infrastructure, to high -end industries such as semiconductors, clean energy and AI.

The aim is to achieve “socialist modernization” by 2035 -a higher standard of living for all and economy, led by advanced production and less reading the import of foreign technologies.

He knows that in order to get there, he will fully need the private sector on board.

“Instead of marking the end of the technology sector control (Jack Ma), the re -appearance suggests that Beijing is rotating from repression to a controlled commitment,” Associate Professor at the University of Sydney told the BBC, Marina Gian.

“While the private sector remains a critical pillar of China’s economic ambitions, it must be aligned with national priorities – including independence in key technology and strategic industries.”