Apple CEO Tim Cook and China Development Forum: “App Store Growth is Growing Stronger than We Think,” Li Qiang reportedly told Beijing
China’s new premier, Li Qiang, has offered a welcome to foreign companies in an effort to arrest a slump in business confidence.
On the sidelines of the China Development Forum in Beijing, Li met a group of global CEOs, including Apple’s Tim Cook.
He told the executives that China will let its door be wider and he urged them to invest in China.
Li pledged that the country will align with international economic and trade rules, give equal treatment to foreign investment and facilitate trade and investment by removing government controls.
Pfizer CEO Albert Bourla and Rio Tinto CEO Jack Stausholm were two of the people who were present at the forum.
Cook said he was happy to be back as the company celebrated its 30th year in the country, according to state media. This is his first trip to China since 2019.
The relationship between China and Apple has grown over the last three decades, according to Cook. Our app store is flourishing because of our huge supply chain in China.
The Tech Sector and the Chinese Government: A Memorandum after Jack Ma’s Super-Technology Resummation in October 2020
Premier Li Qiang, a trusted ally of Xi who was confirmed as the country’s No 2 official this month, followed up by rolling out a series of measures intended to repair ties between the government and the private sector.
The problems have been worsened by the Communist Party’s “zero- Covid policy” and a sweeping ban on private business.
The measures have resulted in weak business confidence, a slump in investment and surging unemployment. The youth jobless rate, in particular, hit more than 18% last month.
According to the company, Foxconn secured a new site in Vietnam last month to increase production of Apple products in the country.
In its annual survey of its members, the American Chamber of Commerce in China found that fewer than half of them considered China to be a top investment destination.
Wang held a dozen personal meetings with senior company officials, including the CEOs or chairs from Swire Group, Qualcomm, BMW, Mercedes-Benz and Nestlé, according to the ministry.
The Chinese government is now facing significant economic challenges. It wants to shore up growth and restore confidence in the tech sector after three years of strict Covid-19 controls.
After two years of a brutal assault on China’s tech industry and private businesses, investors are beginning to bet on a return of regulatory support for the country’s tech industry.
The change of the internet conglomerate into six separate units is a sign that Beijing’s campaign against Big Tech hasn’t fundamentally changed. Regulators still intend to reduce the monopolistic nature of tech giants and limit their power, even as they urge private companies to do their part to create jobs and boost a flagging economy.
Jack Ma went to mainland China shortly after the announcement of the restructuring. Ma had been spending time overseas and otherwise keeping a low profile since the Chinese government began a fierce crackdown on the tech sector in late 2020.
Jack Ma’s sudden reappearance makes it seem like a planned media event intended to boost market sentiment at a critical moment.
Ma is seen as a symbol of China’s tech industry and a barometer of the Chinese government’s support for private business. His presence is seen as evidence of a more supportive approach to the private sector, at a time when China’s economy badly needs growth.
In October 2020, the once high-profile entrepreneur criticized the country’s financial regulatory system for being too rigid and unfriendly to small business. As a result, the authorities shelved Ant Group’s planned $35 billion IPO at the last minute.
Huge sums were wiped off the market values of China’s most powerful private companies due to a regulatory onslaught on Big Tech. Alibaba’s stock is still down 70% from its peak just days before regulators abruptly pulled the Ant Group IPO.
During his first news conference earlier this month, Li said there was a period of incorrect conversations and comments last year that made some private entrepreneurs worried.
Alibaba Inc. is Reducing $Tencent$ into $e-e+$ and $gamma$
“Tencent is the obvious [one] next,” Hong said, adding that the social media and gaming giant has already started reducing its stake in portfolio companies, including food delivery company Meituan.
The move marks the most significant overhaul in the company’s 24-year history and will “unlock the value” of its various businesses, it said on Tuesday.
Alibaba’s business will be split into six units: domestic e-commerce, international e-commerce, cloud computing, local services, logistics, and media and entertainment.
“The market is the best litmus test, and each business group and company can pursue independent fundraising and IPOs when they are ready,” Alibaba CEO Daniel Zhang said in an email to employees.
Citi analysts said Tuesday their target price for Alibaba’s US-listed stock was $156 per share, which is nearly 60% higher than Tuesday’s closing level.