Jack Ma back in China, So?
It's funny that the public is so concerned about where Jack Ma is.
Why don't we have the same obssession with Bill Gates and Jeff Bezos whereabouts?
I guess it is because Ma's absence has fueled speculation about his relationship with the Chinese government, leading many to fear that he may have been arrested or exiled. This highlights the perception that speaking out against the Chinese government can have serious consequences.
It's true that Jack Ma had gone off the radar for a while, and during that time he devoted himself to learning about agriculture and exploring how technology could be used to improve it.
Recently, he resurfaced and made a public appearance at a school in Hangzhou, which could be a PR stunt. It seemed to signal that Ma was ready to resume his business activities in China.
Coincidentally with Ma's return to China, Alibaba announced its split to six independent companies. This is a significant departure from Ma's original vision of the "Alibaba Economy" where a range of tech businesses would operate under one roof.
While some naysayers suggested that the Chinese government may have forced the split as a way to increase control over Alibaba, it's important to note that Alibaba has previously spun off companies like Alihealth and Alibaba Pictures on its own, and JD.com has also done so with JD Logistics and JD Health.
Therefore, it's more likely that the split was driven by competition rather than regulation. With Alibaba's growth having significantly slowed down, the company likely needs to make strategic moves to stay ahead of the curve.
According to an alternate version of events, it was rumored that Chinese authorities had been in talks with Jack Ma for several months, urging him to return.
The significance of Jack Ma's return lies in the fact that he has been viewed as a barometer for measuring the Chinese government's level of support for private businesses. Ma's return to China indicates a renewed commitment by the new Politburo team to cultivate a favorable environment for private enterprises.
This is consistent with the speech at Boao Summit by China Premier, Li Qiang. He not only expressed strong support for Chinese private businesses, but also extended gratitude and reassurance to foreign enterprises.
Thanking the foreign support, he said (translated),
"In the past three years, in the fight against the epidemic, enterprises, including foreign-funded enterprises , have stood with us and given us great understanding and support. Just now the chairman of AstraZeneca mentioned that we encountered many difficulties in Shanghai at that time, and all foreign-funded enterprises understood this very well. They stuck with us and most of them did not retreat, and there were a few who did. Those are very few and do not represent the majority."
Alluding to the matter of Alibaba and Jack Ma, Li Qiang said (translated),
"We have never changed the basic national policy of opening up to the outside world, either legally or policy-wise, but we have noticed that public opinion has indeed been biased in recent years, including our non-compliance with certain private enterprises. The punishment of behavior was originally only a punishment for a certain company and a certain non-compliance behavior, but some public opinions are biased, as if it is (for) which type of company. We have never been like this. What we punish are non-compliance behaviors, not any type of enterprises, including foreign-funded enterprises. What we are emphasizing now is that all businesses are treated equally."
After two years of strict regulations, it appears that China is beginning to open up and adopt a more pro-business stance. Notably, there have been no reports of new regulations in recent times.
It will take more time and more confirmations that China is open for business again to build investors confidence. Nonetheless it is looking more promising now.