Has Xi Jinping brought China’s private sector back into the fold?

When President Xi Jinping brought together China’s most prominent entrepreneurs for a high-profile symposium, markets and industry observers the world over were watching.

News of the symposium had garnered a great deal of attention, as such a meeting had not taken place since late 2018. In the years after that gathering, a series of seismic economic shifts – including several strict regulatory crackdowns – hampered investor confidence and deflated analysts’ outlooks for the future of the country’s private sector.

Speculation was rife in the lead-up to the meeting over which government officials would attend, which business leaders would be invited and what would be discussed. Now, with the symposium concluded, those questions have answers.

What was the backdrop for the meeting?

Similar to the 2018 symposium – which took place in the first year of the trade war launched by US President Donald Trump – Monday’s meeting was held in the context of tariff hikes and threats from Trump in the first months of his second term. These tax increases are expected to stem the enthusiasm of China’s private enterprises, which contribute over 80 per cent to urban employment.

Monday’s meeting, scheduled at this critical juncture, represents a show of support from the central government to private enterprise – and an attempt to stabilise public expectations as well as investor confidence.

The symposium may have been prompted by a notable shift in the battleground for technological advancement, where breakthroughs from private companies have helped shore up investor sentiment and boost public perception of China’s potential for innovation.

What did Xi want to convey?

  

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