Jack Ma’s return is part of China’s plan

Apple CEO Tim Cook at the Beijing Development Forum: “We are glad to see you back in China,” he told the tech news conference on Monday

China has welcomed foreign companies with open arms in the hopes that they will aid the country’s ailing economy.

Apple CEO Tim Cook attended the China Development Forum in Beijing on Monday with Li, who was appointed earlier this month.

He said that China will continue to open its doors to the world no matter what the international situation is like. The global division of labor has been integrated into China’s economy.

Li promised that the country will align with international economic and trade rules, give equal treatment to foreign investment and facilitate trade and investment by removing government controls.

The forum was hosted by the likes of Pfizer’s CEO Albert Bourla, Rio Tinto’s CEO Jakob Stausholm and Hyatt’s CEO Stephen Schwarzman.

Cook spoke at a panel discussion on Saturday, saying he was happy to be back as the company celebrated its 30th year in the country, according to state media. This is his first trip to China since 2019.

Concerns about foreign capital leaving China have grown. In recent weeks, reports said Apple has accelerated plans to shift some of its production outside of China, telling suppliers to plan more actively for assembling Apple products elsewhere in Asia.

China is a Tech City: Implications of Ma’s No. 2 Decree for China’s Digital Economy and the 21st Century

Li, who headed the party inShanghai, was chosen as the country’s No. 2 official later this month, as he helped solidify his hold on power.

But the problems have been exacerbated by the Communist Party’s erratic and draconian zero-Covid policy, which ended late last year, and a sweeping crackdown on private business.

The measures have resulted in weak business confidence, a slump in investment and surging unemployment. The youth jobless rate, in particular, hit more than 18% last month.

Foxconn, Apple’s biggest contractor, said last month it had secured a new site in Vietnam to expand production in the Southeast Asian country, according to the company.

The American Chamber of Commerce in China found in its survey for the first time in 25 years that fewer than half of its members ranked China as a top investment destination.

The ministry stated that Wang held a dozen personal meetings with senior company officials.

In order to encourage foreign companies to set up shop in China, the ministry will launch an Invest in China Year in 2023.

It worked. Shares in Alibaba

            (BABA), which has a market capitalization of $260 billion, soared 12% in Hong Kong on Wednesday, following a 14% surge on Wall Street overnight, leading the tech sector’s gains in the Asia Pacific.

Beijing’s major concern is that private tech firms have become too big and powerful. During its years-long clampdowns, the government sought to reduce the monopolistic nature of many prominent tech companies, slapping them with big fines, banning apps from stores and demanding that some firms completely overhaul their businesses.

Shortly after Jack Ma returned to China, it was announced that the restructuring was taking place. Ma had been spending time overseas and otherwise keeping a low profile since the Chinese government began a fierce crackdown on the tech sector in late 2020.

This idea is reinforced by Jack Ma’s reappearance which seems to be a planned media event meant to boost market sentiment at a critical moment.

In a policy shift, Chinese leader Xi Jinping recently urged the government to support private businesses, while calling on entrepreneurs to play a role in boosting growth and tech innovation, so that China can better counter what he called “containment” and “suppression” from the West led by the United States.

In October 2020, the once high-profile entrepreneur criticized the country’s financial regulatory system for being too rigid and unfriendly to small business. As a result, the authorities shelved Ant Group’s planned $35 billion IPO at the last minute.

A sweeping regulatory crackdown on Big Tech followed, which later engulfed China’s most powerful private companies, wiping huge sums off their market value. Just a few days before regulators pulled the Ant Group IPO, the stock ofAlibaba is still down 70% from its peak.

“For a period of time last year, there were some incorrect discussions and comments in the society, which made some private entrepreneurs feel worried,” Premier Li said at his first news conference earlier this month.

Alibaba’s e-commerce business as a litmus test for the company’s growth and future. Comment on “Aug 15, 2009, Hong Kong, China” by Daniel Zhang

Hong says that the social media and gaming giant has started to reduce its stake in portfolio companies.

The most significant shake up in the company’s history willunlock the value of its various businesses.

The domestic e- commerce group is a wholly owned unit that contributes to a majority of the company’s revenues. The other five can pursue their own public listings.

Daniel Zhang said in an email that the market is the most important litmus test for each business group and company, and that they are able to raise money independent of the market.

Citi analysts said Tuesday their target price for Alibaba’s US-listed stock was $156 per share, which is nearly 60% higher than Tuesday’s closing level.