Will Jack Ma’s return help save the Chinese economy?
Published: 23 Dec. 2024, 18:55
HAN WOO-DUK
The author is a senior reporter of the China Lab.
It was just three minutes. Jack Ma spoke for three minutes at the 20th anniversary event of Ant Group, an Alibaba-affiliated financial firm, on Dec. 8. The message was simple. “If we made a living on the Internet for the past 20 years, we should find ways to make a living with artificial intelligence for the next 20 years.” He filled the three-minute speech with AI and came down from the stage. The Chinese IT industry raves that Jack Ma is back. It seems that Jack Ma is about to return to management.
It was in November 2020 that Jack Ma had to disappear from the continent. “In China, a financial system does not exist. So what system crisis are you talking about?” His remark upset leaders, and his endeavor to take Ant Group public went up in smoke. In the past four years, he was all over the world, from Japan to Singapore to the United States.
Alibaba atrophied without Jack Ma. Their performance was stagnant, and the net profit was maintained by cutting costs. Many employees were fired, joining the ranks of unemployed youth in China. Investment was cut off, and subsidiaries closed one after another, reflecting the current state of the IT industry losing its dynamism. So it is natural that people are excited to see Ma at an official event. Industry experts are closely watching the changes he would bring to Alibaba.
Changes in general trends can already be spotted. The National People’s Congress of China will enact the “Private Economic Promotion Act” this week. It focuses on providing a fair competition environment for private companies by eliminating disadvantages in funding and opening the government procurement market. The reasoning for this is obvious. Private companies are the growth engines absorbing 80 percent of urban workers. Without vitalities in the private sector, China would have a hard time breaking through the current economic crisis. Economic dynamism cannot be revived without removing the shackles put on the private companies in the name of joint prosperity. There have been lots of talks so far. But this time, the government seems to be pursuing meaningful changes with the will and plan to support them with laws, not just words.
The state-run People’s Daily recently published an article by Tencent Chairman Ma Huateng, another key figure representing the Chinese IT industry. He wrote, “The prospects for private companies are bright thanks to the leadership of the party and the government.” The private sector is responding to the government’s appeasement gesture. This is how China is putting private businessmen on the forefront of the economy.
Jack Ma, who led China’s Internet revolution 20 years ago, is about to return to the stage under the banner of AI. Will private companies, symbolized by Jack Ma, bring new dynamics to the economy? This is another point to watch about China in 2025.
The author is a senior reporter of the China Lab.
It was just three minutes. Jack Ma spoke for three minutes at the 20th anniversary event of Ant Group, an Alibaba-affiliated financial firm, on Dec. 8. The message was simple. “If we made a living on the Internet for the past 20 years, we should find ways to make a living with artificial intelligence for the next 20 years.” He filled the three-minute speech with AI and came down from the stage. The Chinese IT industry raves that Jack Ma is back. It seems that Jack Ma is about to return to management.
It was in November 2020 that Jack Ma had to disappear from the continent. “In China, a financial system does not exist. So what system crisis are you talking about?” His remark upset leaders, and his endeavor to take Ant Group public went up in smoke. In the past four years, he was all over the world, from Japan to Singapore to the United States.
Alibaba atrophied without Jack Ma. Their performance was stagnant, and the net profit was maintained by cutting costs. Many employees were fired, joining the ranks of unemployed youth in China. Investment was cut off, and subsidiaries closed one after another, reflecting the current state of the IT industry losing its dynamism. So it is natural that people are excited to see Ma at an official event. Industry experts are closely watching the changes he would bring to Alibaba.
Changes in general trends can already be spotted. The National People’s Congress of China will enact the “Private Economic Promotion Act” this week. It focuses on providing a fair competition environment for private companies by eliminating disadvantages in funding and opening the government procurement market. The reasoning for this is obvious. Private companies are the growth engines absorbing 80 percent of urban workers. Without vitalities in the private sector, China would have a hard time breaking through the current economic crisis. Economic dynamism cannot be revived without removing the shackles put on the private companies in the name of joint prosperity. There have been lots of talks so far. But this time, the government seems to be pursuing meaningful changes with the will and plan to support them with laws, not just words.
The state-run People’s Daily recently published an article by Tencent Chairman Ma Huateng, another key figure representing the Chinese IT industry. He wrote, “The prospects for private companies are bright thanks to the leadership of the party and the government.” The private sector is responding to the government’s appeasement gesture. This is how China is putting private businessmen on the forefront of the economy.
Jack Ma, who led China’s Internet revolution 20 years ago, is about to return to the stage under the banner of AI. Will private companies, symbolized by Jack Ma, bring new dynamics to the economy? This is another point to watch about China in 2025.
with the Korea JoongAng Daily
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