Jack Ma and President Xi: Back in Business

Jaxon Carey

Staff Writer

When it comes to businessmen building empires, the United States has Jeff Bezos, Elon Musk, and Mark Zuckerberg. China had Jack Ma. 

Ma amassed his fortune as the creator of Alibaba, one of the world’s largest e-commerce platforms, according to Forbes. He currently sits as the eighth richest person in China, despite losing half his wealth since 2020, according to CCN. His influence is undeniable, with the Cheung Kong Graduate School of Business calling him one of “China’s most influential entrepreneurs in history.” He still, to this day, holds considerable weight in the world of Chinese entrepreneurs, despite his fall from grace with China’s communist party.

Four years ago, Ma gave a speech critical of Chinese regulations on private business, which according to CNN Business, came just before the Chinese government, led by President Xi Jinping, had their largest crackdown on private industry in years. Bloomberg reports that after this speech, which famously said that Chinese regulation would suffocate innovation in China, China cancelled Ma’s initial public offering for Ant Group Co. The Sydney Morning Herald writes that Chinese officials  fined Ant $1.5 Billion. After all the damage and fighting, Ant’s evaluation, previously set to be $315 billion, dropped to $78.5 billion. Alibaba didn’t fare any better, with Chinese regulations and crackdowns resulting in Alibaba losing $620 billion from 2020.

It’s safe to say the relationship between Xi and Ma was tense. Following this crackdown, Ma was reported to be laying low in Japan, according to Business Insider. For the previously outspoken billionaire, who would perform in concerts for his employees, staying quiet and laying low was new for Ma. 

Today, however, times are changing .Xi hosted top business leaders at a forum February 17, where he personally gave a speech, according to International Intrigue. Sitting in the front row, and clapping enthusiastically for Xi, was Jack Ma. The BBC writes that not only was Ma front and center, but his handshake with Xi signals that Ma is back. With Xi and Ma appearing to be in good graces with each other, Financial and Tech experts are all asking the same question. What does this mean for China’s relationship with the private sector?

The Financial Times reports that China has been battling a real-estate crisis, low consumption, and high youth unemployment. With policies designed to boost growth having a limited effect, Xi presented the problem as “surmountable rather than unsolvable.” Surrounding the focus on these issues by Beijing is Xi bringing Ma back. 

The Straits Times lists several developments in China’s private sector that have Xi and others eying more investment. With DeepSeek catapulting Chinese AI ahead of American development, BYD surpassing Tesla to be the world’s top electric car manufacturer, and with Huawei announcing a tri-fold smartphone, the Chinese private industry has become an invaluable tool for Xi amidst the US-Chinese development cold war. The Straits Times also states that on February 17, Xi reiterated a promise he made in 2018,  calling for the private sector to serve their country and continue to innovate development in key areas.

Amid growing rivalries with the U.S. in technology, ConsumerWealth Magazine states that this meeting with key business leaders, as well as the decision to bring Jack Ma back, shows that China is ready to win. Citigroup writes that “Made in China in 2025” introduced in 2015, was the huge push to rally Chinese markets and make China the main country to trade with. Surrounding these technological advancements, and with Xi making his commitment to the private sector clear, Xi isn’t taking his foot off the gas

Back on February 6, a Senate hearing  titled “Made in China 2025-Who is Winning?” concluded that “Beijing has the momentum and control of the battlefield as well as the players on it. The Chinese Communist Party is on a path toward a clean sweep,” according to the Foundation for Defense of Democracies. By meeting with business executives, highlighting support for the private sector, and bringing back Jack Ma into the spotlight, Xi is signaling that China is back in Business, and they’re here to win.

Image courtesy of Getty Images.