China’s billionaires support Xi Jinping’s plan to restore economy

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China’s billionaires have stepped out of the shadows to praise the Communist Party’s efforts to restore private sector confidence as Beijing attempts to restart the economy’s faltering recovery after the pandemic.

The country’s typically low-profile titans of industry — many of which have been hit by regulatory action in recent years — issued a series of editorials and statements on Wednesday and Thursday, including party favors for promoting private companies. declared its support for a new action plan.

The apparently well-planned expression of confidence from the giants comes as the world’s second-largest economy grapples with a slump in private sector business and consumer confidence.

In a lengthy state media editorial, Tencent founder Pony Ma said he was “extremely encouraged and deeply inspired” by President Xi Jinping’s support for private groups.

The 31-point action plan unveiled by the party and the government on Wednesday vowed to improve the business environment and treat private companies at par with their state counterparts. These measures include easing capital raising efforts of companies and supporting their overseas expansion.

Lei Jun, chief executive of phone maker Xiaomi, called it a “clear policy signal” for the companies to “press ahead with high-quality development and contribute to the modernization of science and technology.”

In a statement published by the Zhejiang Province Industry Group, soft drink giant Zhong Qinghou said his group Wahaha would “take the path of serving the country” and would “not let down the party or the state”. His words appeared beneath a picture of Zong wearing a red party pin.

Social media posts from the Zhejiang group included praise from 13 other local entrepreneurs, including Li Shufu, chairman of carmaker Geely, and Lai Meisong, founder of courier ZTO Express.

China’s economy grew less than 1 percent in the second quarter compared with the previous three months, raising concerns that a deep-seated mess in the property sector is hurting business confidence.

Private sector investment declined year-on-year in the second quarter. The private sector in China accounts for 60 percent of GDP and 80 percent of urban unemployment, making it an important engine of growth.

Beijing has rolled back a two-year crackdown on technology as it seeks to encourage businesses to invest and expand amid a gloomy economic outlook.

As part of its efforts to restore confidence, the government has completed investigations into Tencent’s fintech arm and Jack Ma’s Ant Group. The two were fined a combined total of Rmb10bn ($1.4bn).

Officials, including Premier Li Qiang, have also met with top tech executives and praised the tech groups’ efforts to boost the country’s semiconductor industry.

In keeping with the party’s pledges for fair competition and equal protection under the law, Tencent’s Ma said the new measures had “reinforced everyone’s confidence to build better and stronger companies”.

HSBC chief Asia economist Frederick Newman said the 31 points lacked detail, but represented an effort by the central government to send a strong signal to lower-level officials about the importance of boosting private sector activity. Is.

He said markets await a meeting of China’s ruling Politburo this month, which is expected to discuss stimulus measures. Analysts consider these necessary to give impetus to the faltering economy. “There is a wait-and-see attitude among investors who want to see if concrete policy action will be taken,” Newman said.

While the document was full of praise, support and reforms to boost the private sector, it also made it clear that the party would remain closely involved in business. This included a call to “reform the mechanism for shaping the ideological thinking of entrepreneurs” and “in-depth education on ideals, beliefs and core socialist values”.

When it came to helping the country, Ma said that Tencent would take Xi’s common prosperity program “as our strategic guide” and promised to “deeply support national basic research and many charitable efforts.”

“As a private technology conglomerate, we bear an important responsibility to foster technological innovation and drive growth,” he added.

Additional reporting by William Langley and Cheng Leng in Hong Kong and Nian Liu in Beijing