Xi Jinping's Symposium: Jack Ma's Return and Absence of Baidu and TikTok Executives

Key figures missing as Xi Jinping shifts focus to innovation and private enterprises

Chinese President Xi Jinping held an unusual symposium with private business leaders, sparking discussions both in China and abroad. The event was notable for the return of Jack Ma, the founder of Alibaba, who had remained out of the public eye for years following his criticism of China's financial regulators. In contrast, prominent figures such as Li Yanhong, the founder of Baidu, and Zhang Yiming, the founder of TikTok’s parent company ByteDance, were absent. This stark difference has led to various interpretations regarding the shifting priorities of China's leadership.

Jack Ma's return to the spotlight at the symposium, where he was seen shaking hands with President Xi, is widely seen as a political rehabilitation of sorts. Ma had publicly criticized China’s financial regulations in late 2020, leading to the suspension of the much-anticipated IPO of Ant Group, a financial affiliate of Alibaba. His disappearance from the public eye following this incident symbolized the Chinese government’s tight grip over big tech companies. However, his participation in this event is being viewed as a sign that Xi Jinping is sending a message of support for the tech sector, even amid ongoing regulatory challenges.

Economists, such as Ding Shuang, Chief Economist at Standard Chartered Bank, have noted that Jack Ma’s return represents a hopeful sign for China’s private enterprises. Ding stated in an interview with the South China Morning Post that this symposium seemed to recognize the contributions of private companies, with Ma’s appearance symbolizing a willingness to engage and support innovation and entrepreneurship.

The timing of the event is also significant, given China's current economic difficulties. Many believe that Xi Jinping is signaling his intention to turn to the private sector to help revive the economy. This was further highlighted by the presence of Liang Wendong, the founder of the AI startup DeepMind, whose company has caused a stir in the US tech industry. Liang's appearance alongside tech giants and his handshake with Xi Jinping reflects his elevated status and the growing importance of the AI sector in China’s future development.

On the other hand, the absence of Baidu’s Li Yanhong has raised questions about the company’s declining position in the competitive AI space. Baidu had once been at the forefront of AI development in China, particularly with its creation of the AI chatbot Ernie. However, reports suggest that Baidu has been losing ground to newer, more innovative competitors like DeepMind. A source from a securities firm commented to Singapore’s United Daily News that Baidu, which had enjoyed a leading position in AI development, now appears to be trailing behind companies like DeepMind, indicating a shift in the industry’s leadership.

Furthermore, the absence of ByteDance’s Zhang Yiming, the founder of TikTok, has also attracted attention. TikTok's global influence has skyrocketed in recent years, but it appears that Xi Jinping may be focusing more on emerging sectors like artificial intelligence rather than established social media giants.

Another notable exclusion from the event was the absence of real estate moguls. Unlike previous meetings in 2018, where real estate giants like Vanke, Evergrande, and Country Garden were invited, none of the major figures from China's property sector attended this symposium. Experts suggest that this could be a reflection of Xi Jinping's intention to shift away from real estate as the primary driver of China's private economy. Instead, industries such as new energy and high-tech manufacturing are now seen as the pillars of future economic growth.

Overall, the absence of key figures from the real estate and tech sectors, and the prominent presence of Jack Ma, indicate a possible turning point in China’s economic strategy. By emphasizing support for innovation and private enterprise, Xi Jinping’s symposium signals a future where technology and new industries play a leading role in shaping China’s economic recovery and growth.