Beijing is repositioning the private sector as the cornerstone of China's global competitiveness and technological edge in the face of growing geopolitical and economic headwinds, according to analysts' assessments following President Xi Jinping's meeting with prominent entrepreneurs.
Observers also emphasised the importance of more stimulus and policy reforms to get the ball rolling.
The first gathering of its kind since 2018, Monday's symposium saw Xi vow leadership's steadfast and unwavering support for the private sector while calling on entrepreneurs to "showcase their talents and make significant contributions".
"It's a calculated move to restore confidence and rebuild trust" after years of economic slowdown, regulatory tightening, and bureaucratic interference at multiple levels, according to Jing Qian, a managing director with the Centre for China Analysis (CCA) at the Asia Society Policy Institute, adding that the meeting reflects how private entrepreneurs are considered indispensable in China's efforts to compete globally and to maximise the country's technological edge.
The most conspicuous attendee was Jack Ma, founder of Alibaba Group, who has largely stayed out of the public limelight since 2020 when Beijing halted the initial public offering of his fintech company, Ant Group, as leadership tightened controls over the tech sector. Ma gave up control of Ant in 2023. Alibaba owns the South China Morning Post.
The meeting signalled Beijing's shift from rectification to revitalisation, and that China has concluded its regulatory-tightening cycle, according to economists led by Robin Xing, chief China economist at Morgan Stanley.
"With regulatory restructuring largely completed, we expect measured policy support and a more predictable regulatory environment in the next two to three years," they said in a report on Monday.
Years of regulatory crackdowns on the private sector, coupled with unpredictable policy changes, bred significant uncertainty, deterred long-term investment and stifled innovation. Meanwhile, arbitrary detentions and politically driven enforcement at local levels turned business success into a potential risk.
Jing with the CCA said the meeting served to tell regulatory bodies and local governments that "China needs its private entrepreneurs", that the climate of fearing for one's safety and the security of assets is "a direct liability to China's economic and technological ambitions", and that "excessive crackdowns and unchecked bureaucratic interventions are now recognised at the highest levels as threats to national economic stability and strategic goals".
Also on Monday, Goldman Sachs said that, in light of the meeting's "timing, format and content", it served "as a clear signal from the top leadership to stabilise expectations of private enterprises and entrepreneurs".
But Goldman Sachs also stressed that "implementation - including more demand-side stimulus and more market-friendly policy reforms - remains the key to confidence rebuilding".
Confidence among entrepreneurs and investors in China has been muted amid a sluggish domestic economic recovery and escalating geopolitical tensions with the United States.
Some localities, bereft of revenue after a decline in land sales, also began penalising firms with heavy fines - an action criticised by central officials.
"We must strengthen law-enforcement oversight, focus on rectifying arbitrary fees, fines, inspections and seizures, and effectively protect the legal rights and interests of private enterprises and entrepreneurs in accordance with the law," Xi was quoted as saying.
Like Goldman Sachs, economists at Morgan Stanley also cautioned that China still needs more consumption-centric reform and stimulus to sustain the return of corporate confidence.
Lei Jun, founder and CEO of Xiaomi; Pony Ma Huateng, founder and CEO of Tencent; Wang Chuanfu, chairman and CEO of electric carmaker BYD; Ren Zhengfei, founder and CEO of Huawei Technologies; Wang Xingxing, founder of robotics firm Unitree; and Liang Wenfeng, founder and CEO of DeepSeek, also attended the meeting.
Afterwards, Lei told CCTV that the president advised entrepreneurs to "focus on their core industries, prioritise their main business, and strive to grow bigger and stronger" - a message that Lei found "inspiring".
Premier Li Qiang, Wang Huning - the head of China's top political advisory body - and Vice-Premier Ding Xuexiang were also present.
Following the symposium, China's National Development and Reform Commission on Tuesday unveiled measures intended to support the private sector. State media said the nation's top economic planning body will expedite the update of the market-access negative list - a document outlining sectors restricted to foreign and private investment - while rolling out other initiatives aimed at boosting domestic investment and demand.