During a carefully choreographed meeting, Chinese President Xi Jinping collected the bosses of countless technology groups on Monday. XIS encounter with business bosses – his first since 2018 and the second since he took office – marks a political change. In recent years, the authorities had increasingly attracted their thumb screws for the private sector.
Among other things, they prevented the IPO from the financial service provider Ant and the Service Broker Didi. In the meantime, however, the second largest economy in the world suffers from an economic membrane.
Analysts evaluated this meeting with a view to growing tensions with the US as a sign of support for the private sector. “It is a tacit recognition that the Chinese government needs private companies for their technical rivalry with the United States,” said Christopher Beddor, senior expert in the Gival Dragonomics research house. “The government has no other choice.”
In order to slow down the technological and military rise of the People’s Republic, the United States has further limited the export of high technology to China in recent years. They also took goods from the country with rates and threatened more. Regardless of this, Chinese companies repeatedly caused a sensation with innovations, especially in the promising area of artificial intelligence (AI). A well -known example of this is Deepseek. According to the information, the development of the software only cost a fraction of the usual sum. She is also satisfied with considerably less computing power. Nevertheless, Deepseek is considered equal to Western competitors such as Chatgpt.
XI Looking for a way out of the economic flaut
According to the State of Xinhua, XI gave a speech at the top. However, it did not provide information about their content. The president probably sends a similar signal as in 2018 when he announced tax cuts and financial assistance, said Xiaoyan Zhang, professor at Tsinghua University in Beijing. XI signal support to the company so that they promoted technological progress and have increased consumption in Germany. According to official Chinese statistics, the private sector stands for more than half of tax revenues, more than 60 percent of the economic output and 70 percent of new technological developments.
In the meantime, investors then declined the first photos of the meeting that managers were invited and what the seats looked like. The heads of Apple -competitry Huawei and the BYD of the electric cars were closest. Jack Ma, the founder of the Amazon competitor Alibaba, was also invited. His appearance is considered symbolic, because the most prominent Chinese technical billionaire has withdrawn from the public after the eruption of his financial service provider Ant.
While the founder of the Ki start-up Deepseek was also shown on the recordings, the bosses at the Tikok Mother Bytedance and Baidu missed. The shares of the Google user then fell by seven percent in Hong Kong.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
