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Xi Jinping gave China's big tech companies a personal stamp of approval

Feb 18, 2025 - businessinsider.com
Chinese leader Xi Jinping recently met with top tech leaders, including Jack Ma, signaling renewed support for the private sector. This meeting marks a shift from China's recent crackdown on Big Tech, prioritizing national security over private sector profits. Xi emphasized the need to remove obstacles for private businesses and promote fair market competition. His endorsement led to a rally in Chinese tech shares, with the Hang Seng Tech Index closing 2.5% higher.

The meeting highlights the importance of the private sector in China's economy, especially amid geopolitical tensions with the US. Analysts note that while Xi's support boosts investor sentiment, a broader economic recovery depends on real policy changes. Jack Ma's presence at the meeting is significant, indicating a potential return to favor for tech leaders focused on profit-making ventures. Despite the positive signals, experts suggest more needs to be done to ensure a level playing field for all companies.

Key takeaways:

  • Xi Jinping met with China's top tech leaders, signaling support for the private sector and encouraging fair market competition.
  • Chinese tech shares rallied following Xi's meeting, indicating positive investor sentiment towards the private sector's role in the economy.
  • Jack Ma's presence at the meeting suggests a renewed acceptance of profit-driven tech leaders in China.
  • Despite Xi's endorsement, analysts believe more policy changes are needed to support a broad economic recovery in China.
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