Xi Jinping tries to give private business a ‘confidence boost’ as economic slowdown bites

President Xi Jinping has told entrepreneurs that their businesses will be protected and Beijing will try to find new ways – such as tax cuts and bailout funds – to help them, his latest bid to shore up confidence in the private sector.

Xi, the most powerful Chinese leader in decades, has been trying to reassure China’s capitalists at a time when many business owners are worried about its economic future and as the state becomes increasingly intrusive. In an open letter two weeks ago, he told private entrepreneurs he would continue to value and protect them.

On Thursday, Xi convened an unprecedented “symposium” to hear the views of dozens of representatives from the private sector – including Robin Li of Baidu and Pony Ma of Tencent. They were joined by economic policymakers, ministers and bankers as well as the vice-premiers, Han Zheng and Liu He.

Afterwards, Xi shook hands with the business delegates, one telling the president that his speech had made him feel more confident. Xi replied, “I’m here today to boost your confidence,” according to state television.

During the speech, Xi spoke about the ruling Communist Party’s policy of encouraging private sector development since 1980 – after it purged many business owners and confiscated their assets in the 1960s and ’70s – and issued reassurances such as the private economy would only get “stronger” and could not be “weakened”.

“In recent days, some people have made remarks negating and doubting the private economy. For example, some argued that the private economy has completed its mission and will fade out … some wrongly argued that setting up party cells and labour unions in private businesses is intended to control private enterprises … all these statements are completely wrong and do not conform to the party’s policies,” Xi said in the speech, which was carried by Xinhua.