Jack Ma returns to China as the government tries to quell private sector fears

HONG KONG/BEIJING: Alibaba founder Jack Ma has returned to China, ending a stay abroad that lasted more than a year, which the industry said reflected the sober mood of restive policymakers trying to boost China’s private companies and economy.

The return of China’s most famous entrepreneur could help quell concerns among the country’s private sector companies after two years of draconian regulations. His public appearance underpins the government’s softening tone toward the private sector as leaders try to shore up an economy that has been weighed down by three years of COVID-19 restrictions.

Online chatter that Ma was in China began surfacing on Chinese social media early Monday, and his return was confirmed by the school he had visited and the Alibaba-owned South China Morning Post newspaper.

Ma, a former English teacher, discussed topics such as AI-powered chatbot ChatGPT and also said he hopes to return to teaching one day during his visit, Yungu School said on its official WeChat account. Ma and other Alibaba co-founders founded the school in the e-commerce giant’s hometown of Hangzhou in 2017.

He returned to China last week, said two sources with knowledge of the matter. Reuters was unable to estimate how long he plans to stay in China this time.

Ma’s return “adds to sentiment about the broader platform, the Internet industry,” said Zhang Zihua, chief investment officer at Beijing Yunyi Asset Management.

“Because this means that the new top management has really looked at the status and importance of platform companies in China’s economic development. Previous restrictive policies in the platform, Internet sector are also expected to be adjusted,” Zhang said.

Alibaba shares jumped more than 4% after news of Ma’s earnings broke before giving up some of its gains.

LI’S REQUEST

Ma’s stay abroad symbolizes a turnaround in the fortunes of the country’s private sector after his empire and technology industry came under Beijing’s regulatory crackdown.

Maa’s 2020 speech criticizing China’s regulatory system is widely seen as the spark for tighter government controls and triggered his public retreat. In late 2021, he left mainland China and has been seen in photos in Japan, Spain, Australia and Thailand.

While Chinese officials have recently said they are easing the crackdown and supporting the private sector, Chinese entrepreneurs and investors said they see Ma’s decision to stay abroad as a confidence-eroding factor.

Aware of this, China’s new Premier Li Qiang had since late last year asked Ma to return to the mainland, hoping it would boost business confidence among entrepreneurs, five sources familiar with the matter told Reuters.

Some of those efforts included asking people close to Ma, such as his business partners, to personally persuade the Alibaba founder while he was living in Japan, two of the sources said.

Reuters could not immediately determine whether Ma had returned because of Li’s efforts.

Alibaba and the State Council did not immediately respond to a request for comment.

Li, a close ally of President Xi Jinping, has been at the forefront of the government’s efforts to support the private sector, saying earlier this month that the country’s entrepreneurial environment is improving and that Beijing is treating all companies equally.

However, companies are hesitant and privately point to the lack of a new regulatory framework brought about by new support policies and the crackdown.

This view is shared by long-time Asia analyst Fraser Howie, who has written several books on China’s financial system.

“I can see how this is a sign of relaxation, but none of the laws and institutions set up to control the private sector have changed,” he said.

“It doesn’t matter to private business because he’s already been beaten. The state won, Jack has lost control, power, wealth, and it’s not coming back.”

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