What does Jack Ma's return to the public spotlight mean?

Chinese President Xi Jinping's meeting this week with a group of the country's top business leaders has sparked widespread attention and speculation. The presence of Alibaba founder Jack Ma at the event has further heightened interest.

Jack Ma was once one of China's most prominent and charismatic entrepreneurs, often a subject of public discourse. However, after criticizing China's financial industry in 2020, he gradually faded from public view. His reappearance has ignited fervent discussions among various sectors, with experts and analysts speculating about what it means for him personally, China's tech industry, and the overall economy.

The market reacted positively, with tech stocks, including Alibaba, rising rapidly after the meeting. On Thursday, the e-commerce giant announced better-than-expected financial results, with its stock price surging over 8% at the close of trading in New York. Since the beginning of this year, the company's stock price has risen by 60%.

So, how do analysts interpret Jack Ma's attendance at this event, alongside other prominent figures such as Liang Wenfeng, the founder of DeepSeek? A key question is: has Jack Ma been "rehabilitated"?

Analysts began searching for clues about the significance of the meeting after Chinese state media began publishing photos of the event. China analyst Bill Bishop wrote, "Ma's presence, his seat in the front row, even if he did not speak, and his handshake with Xi, all clearly indicate that he has been rehabilitated." On social media, users praised Ma's return to the public eye. "Congratulations to Jack Ma for landing safely," one Weibo user wrote. "Jack Ma's return is a shot in the arm for the current Chinese economy," another user said.

It is not surprising that observers attach so much importance to Jack Ma's appearance. Before fading from public view in 2020 for criticizing China's state-owned banks for having a "pawnshop mentality," Ma was a representative figure of China's tech industry. The English teacher with no computer background co-founded Alibaba in his apartment more than two decades ago after convincing a group of friends to invest in his online marketplace. He later built one of China's largest technology groups and became one of China's richest people. But after making his "pawnshop mentality" comments, he also lamented the "lack of innovation" in China's banking industry. This led to the cancellation of his fintech giant Ant Group's $34.5 billion initial public offering. At the time, this was seen as Beijing's attempt to suppress a company that had become too powerful and an individual who had become too outspoken. Analysts generally agree that his reappearance in the spotlight, at a seminar personally hosted by Xi Jinping, is a very good sign for Ma. However, some have cautioned that his not being among the speakers may indicate that he has not fully recovered to the exalted status he once enjoyed. Furthermore, the insufficient coverage of his attendance at the meeting by Chinese media seems to confirm that he has not been fully rehabilitated.

At the seminar, Xi Jinping told the attendees that their companies needed to innovate, develop, and maintain confidence in the face of China's economic challenges, which he described as "temporary" and "localized." He also stated that "now is a good time for private enterprises and private entrepreneurs to fully display their talents." This was widely interpreted as the government telling private tech companies that they had also regained favor. Ma's fall from grace preceded a broader crackdown on China's tech industry. Companies faced stricter enforcement of data security and competition rules, as well as state control over important digital assets. Companies in other private sectors, from education to real estate, eventually became targets of the so-called "common prosperity" campaign. Some believe that the common prosperity policy was introduced to restrain the billionaire owners of some of China's largest companies, thereby giving customers and workers more say in the companies' operations and profit distribution. But as Beijing implemented strict new regulations, the value of these companies, many of which were tech companies, evaporated by billions of dollars, unsettling international investors. This, along with a deteriorating global economy affected by the pandemic and Russia's invasion of Ukraine, has led to a considerable change in China's economic situation. Economic growth has slowed, job opportunities for young people have become scarcer, and people's consumption is insufficient amid a downturn in the real estate industry.

As rumors began to spread that Jack Ma would attend Monday's meeting, a glimmer of hope also emerged. Richard Windsor, a technology general manager at research firm Counterpoint, said that Ma's presence would indicate that Chinese leaders "have had enough of stagnation and may be ready to give the private sector greater freedom." In addition to Ma and Liang Wenfeng, the guest list also included key figures from telecommunications and smartphone company Huawei, electric vehicle giant BYD, and many other companies from the technology and industrial sectors. Market analysts at Citigroup said in a report: "The (guest) list highlights the importance of the Internet/tech/AI/electric vehicle industries as they represent innovation and achievement. This may indicate the importance of technology... and the contribution of private enterprises to China's economic development and growth." Attendees also seemed to agree with this view. Lei Jun, CEO of consumer electronics giant Xiaomi, told official media that he felt the chairman's "care and support" for businesses.

This seminar was held after what observers have described as a "Sputnik moment" for China: DeepSeek's disruptive R1 artificial intelligence (AI) model was launched at the end of last month. Shortly after its release, this Chinese-made AI chatbot quickly rose to become one of the most downloaded chatbots in the world. It also triggered a sudden sell-off of major U.S. tech stocks as concerns grew about U.S. leadership in the field. In China, the application's global success sparked a wave of national pride and quickly spread to financial markets. Investment poured into Chinese stocks listed in Hong Kong and mainland China, especially tech stocks. Investment banking giant Goldman Sachs also raised its outlook for Chinese stocks, saying that the rapid adoption of AI could increase company revenues and attract up to $200 billion in investment. But the greatest significance of this innovation is that it is the result of DeepSeek having to innovate due to the ban on exporting advanced chips and technology to China.

Now, with Trump's return to the White House and his fondness for trade tariffs, Xi Jinping may feel the need to readjust his attitude towards Chinese entrepreneurs. Some analysts believe that Monday's meeting does not mark a return to an era of unregulated growth, but rather indicates that the Chinese government is trying to guide investors and businesses towards Xi Jinping's national priorities. The Chinese President has increasingly emphasized what the government calls "high-quality development" and "new productive forces" policies. These ideas have been used to reflect a shift away from previous drivers of rapid growth, such as real estate and infrastructure investment, towards high-end industries such as semiconductors, clean energy, and artificial intelligence. The goal is to achieve "socialist modernization" by 2035 – raising the living standards of all people, and an economy driven by advanced manufacturing that reduces reliance on foreign technology imports. Xi Jinping knows that to achieve this goal, he needs the full support of the private sector. Marina Zhang, Associate Professor at the University of Technology Sydney, told the BBC: "(Jack Ma's) reappearance does not mark the end of the tech industry's censorship, but rather indicates that Beijing is shifting from suppression to controlled participation. While the private sector remains a key pillar of China's economic ambitions, it must align with national priorities – including self-reliance in key technologies and strategic industries."