Private Enterprise Roundtable
－ Spotlight on Transformative Trends in the High-Tech Sector

I. Introduction

The Private Enterprise Roundtable (hereinafter referred to as the "Roundtable") held in Beijing on February 17, 2025, was attended by General Secretary Xi Jinping and brought together China's leading private sector entrepreneurs. The Roundtable was designed not only to boost private sector entrepreneurs' willingness to invest but also to serve as a forum for demonstrating that private enterprises are driving technological innovation in hard tech fields such as semiconductors, AI, new energy, and robotics. Based on the characteristics of the participating companies and General Secretary Xi Jinping's speech, this article examines the increasing role of private enterprises in technological innovation (Note 1).

II. Characteristics and composition of participating companies

Thirty-one private entrepreneurs were invited to this Roundtable, including many founders of hard tech companies in fields such as semiconductors, AI, new energy, and robotics. Of the six private entrepreneurs given the opportunity to speak, five were representatives of hard tech companies (Huawei, BYD, Shanghai Will Semiconductor, Yushu Technology, and Xiaomi). This shows the Chinese government's emphasis on technological innovation in cutting-edge industrial sectors.

In the face of an increasingly stringent U.S. technological blockade and the destabilization of global supply chains, China is focusing on developing its own technologies in strategically important areas. As part of its industrial policy, the government is prioritizing support for the hard tech industries through "Made in China 2025" and the 14th Five-Year Plan (2021-2025). The results of this effort are also reflected in the composition of companies participating in this Roundtable.

In addition to high-tech companies mentioned above, agricultural companies involved in food safety (such as New Hope, Feihe Dairy, and Muyuan Foods) and companies in the cybersecurity field (Qi Anxin) were also invited, reflecting the Chinese government's emphasis on national security. There were no representatives from real estate development companies, which are currently in a deep recession following the collapse of the housing bubble.

With the rapid growth of newly established startups, five young entrepreneurs born after 1980 were also invited to the Roundtable. This is likely a reflection of the high expectations the Chinese government has for startups.

Looking at the regional makeup of the participating companies, the majority are headquartered in Zhejiang Province (6 companies, of which 5 are in Hangzhou), Guangdong Province (5 companies, of which 4 are in Shenzhen), and Beijing. Of these, Hangzhou, the home of Alibaba and an emerging hub of high-tech industries led by private enterprises, is attracting particular attention.

III. Major participating entrepreneurs and their significance

Of the 31 private entrepreneurs who participated in this Roundtable, the following six are particularly noteworthy:

1. (1) Huawei founder Ren Zhengfei
   Huawei is a company that is on the frontlines of the U.S.-China conflict, and it continues to innovate through its own in-house developed technologies while enduring U.S. sanctions. Ren Zhengfei's attendance was seen as a sign of the Chinese government's willingness to support high-tech industry.
2. (2) BYD Chairman Wang Chuanfu
   BYD is a global leader in new energy vehicle and battery technology, and a driving force behind China's green energy strategy. The attendance of the company's Wang Chuanfu is evidence of the government’s high regard for BYD as a successful example of national strategy.
3. (3) Yushu Technology founder Wang Xingxing
   Yushu Technology develops robotics technology and is working to expand its industrial applications. Wang Xingxing was the only entrepreneur born in the 1990s to attend. His participation is seen as a sign from the government that it will actively support young entrepreneurs and develop next-generation technologies.
4. (4) CATL Chairman Zeng Yiqun
   CATL boasts an overwhelming share of the battery market for new energy vehicles and is a forerunner in the development of energy technology. Zeng Yuqun's attendance demonstrates the Chinese government's strategic emphasis on the new energy industry and support for sustainable innovation in technology.
5. (5) DeepSeek founder Liang Wenfeng
   DeepSeek's Liang Wenfeng has attracted attention as a symbol of the development of China's AI industry. The company achieved significant cost reductions in the development of large-scale language models (LLMs), playing an important role in China's goal of technological self-reliance. Liang Wenfeng's attendance demonstrates that the Chinese government has positioned AI technology as a core part of its national strategy and is placing great importance on strengthening its international competitiveness in this field.
6. (6) Reappearance of Alibaba founder Jack Ma
   Among the attendees, Jack Ma, the founder of Alibaba, attracted the most attention, He has been out of public view since November 2020, when the initial public offering (IPO) of Ant Group, a spin-off from Alibaba, was called off. His participation in this Roundtable was seen as a signal that the government was shifting its strict regulatory stance regarding private enterprises to one of support.

IV. General Secretary Xi Jinping's speech

At the Roundtable, General Secretary Xi Jinping delivered a speech on the importance of private enterprises and the policies supporting their development.

First, he reiterated the “two unwavering” policies of “unwaveringly strengthening and developing the public economy, and unwaveringly encouraging, supporting and guiding the non-public economy.” He also said that there is now more room for the private sector economy to develop, creating a “perfect time” for private sector enterprises and entrepreneurs to thrive.

Regarding the difficulties and challenges facing the private sector economy, he expressed the view that these are temporary problems arising in the process of transforming and upgrading the Chinese economy's industrial structure, and that they can be overcome through public-private cooperation.

He stressed that to promote the development of the private sector economy, it is important to strictly implement the Party Central Committee's guidelines and remove the various barriers that hinder both the equal use of production factors and market competition. He also committed to resolving the difficulties private enterprises face in raising funds and collecting unpaid debts, reducing excessive government supervision, fines, and inspections, and strengthening the protection of the rights of private sector enterprises and entrepreneurs.

He called on private sector entrepreneurs to approach their businesses with an entrepreneurial spirit and patriotism, stressing the importance of demonstrating expertise and excellence and actively participating in the construction of socialist modernization. Finally, he expressed his hope that private enterprises will contribute to technological innovation.

V. Increasing expectations for technological innovation by private enterprises

In recent years, regulations on private enterprises in China have been strengthened, and there has been an increasing trend in incidents where corporate freedom has been restricted. Strict regulations on platform companies and cram schools that began in 2020 along with the strengthened application of antitrust laws have caused anxiety in the market and reduced the vitality of private enterprises. It is hoped that this Roundtable will help to allay such concerns, as the government has again stated its clear intention to fully support the growth of private enterprises.

At the Roundtable, the government also announced its intention to strengthen the protection of the rights of private enterprises and to create a fair business environment. The aim is to address the problems of illegal corporate crackdowns and arbitrary enforcement that have arisen in recent years, fostering an environment in which private enterprises can conduct business with peace of mind. A draft of the "Private Economy Promotion Law" has already been announced, and it is expected that the protection of corporate property rights and management rights will be clearly defined in the law.

Furthermore, the government is stepping up its support for private enterprises in the high-tech, and especially hard-tech, sector. This has raised expectations that private enterprises will play an increasingly important role in technological innovation and become a main driver of economic development. As China's 'new big three'—new energy vehicles, solar cells, and lithium-ion batteries—gain momentum in the global market, collaboration between the public and private sectors could harness the potential of private enterprises, leading to advancements in China's industries and a reshaping of the global industrial landscape.