Xi Jinping welcomes top CEOs in push to support private sector

In Beijing, on February 17, 2025, Chinese President Xi Jinping held a significant meeting with the leaders of major private companies including BYD, Huawei, Meituan, Tencent, and Xiaomi. These CEOs gathered to hear a critical address from the president amid China's troubling economic landscape. For years prior, Xi had predominantly favored state-owned enterprises, offering them numerous subsidies and reigning in private sector growth due to concerns over the substantial wealth and influence of private entrepreneurs. The meeting's context is vital, given China's recent economic challenges, highlighted by a real estate crisis that has led to reduced consumer spending and stagnating growth. This crisis has been compounded by a reliance on exports for economic sustainability. The presence of top private-sector leaders at the meeting alongside Xi signifies a potential pivot in government strategy as the leadership acknowledges the urgent need to revive the private sector's role in the economy. This new dynamic indicates a shift in Xi's approach, as he historically admonished private entrepreneurs for their perceived arrogance and wealth accumulation. The rehabilitation of Jack Ma, founder of Alibaba, who had faced a crackdown for criticizing state-owned banks in 2020, also illustrates this significant shift. By re-engaging with business leaders previously sidelined by the government, Xi appears to be moving towards a more supportive model for private companies in response to increasing economic pressures. This strategic pivot aligns with the demands of the economy, showcasing an urgent need for cooperation between the government and the vibrant private sector to bolster growth and stability in China. Overall, this meeting is emblematic of a broader dialogue within the Chinese government as it navigates the intricate balance between maintaining state-favoritism in industry while recognizing the vital contributions of the private sector to the economy. The discussion, framed by the acknowledgment of current economic difficulties, signifies a potential transformation in Xi Jinping's approach towards governing economic relations in China, moving towards a cooperative model that seeks to rejuvenate private enterprise.