- Chinese President Xi Jinping reached out to the domestic private sector amid the growing economic challenges, the CityToday reports.
- Jinping highlighted the importance of private capital to economic development while emphasizing their adherence to the regulatory norms at a recent Politburo meet.
- The private sector generated over 50% of China's tax revenue.
- Also Read: Analyst Slash Earnings Estimates For Alibaba, Baidu, Others Again Amid Surging Covid Environment
- The Jinping-led antitrust crackdown on the domestic technology sector is now weighing on Jinping's political ambitions.
- The crackdown wiped billions of dollars from the tech juggernaut's market caps, distancing Alibaba Group Holding Limited (NYSE:BABA) founder Jack Ma and Tencent Holding Ltd's (OTC:TCEHY) Pony Ma and the private real estate sector from Jinping.
- The tech giants underwent intense workforce restructuring amid the crackdown and economic slowdown.
- The mighty General Secretary of the Communist Party of China and Central Military Commission Chair, Jinping, aims to win the 2022 election and continue to rule the nation.
- The desperation reflects the 20th Party Congress event for 2022, which takes place every five years and could see a change in the leadership.
- The event also reflects potential policy changes valid for the next five years.
- Jinping needs strong private sector backing to nail the election.
- Price Action: BABA shares traded lower by 0.39% at $96.71 in the premarket on the last check Monday.
