Chinese President Xi Jinping is encouraging companies to expand and break technological barriers as Beijing mobilises its private sector to counter rising containment by the US and its allies.

Innovation led by companies is key to realising “high-level technological self-reliance”, Xi declared at a Friday meeting attended by senior Communist Party cadres, including Premier Li Qiang. He said the government should help companies crack core tech challenges facing the country.

Xi said growing private business lies in removing institutional barriers that impede fair competition and calibrating policy to help “solve companies’ real difficulties”. The state sector should be reformed to ensure national economic security, he added, while improving efficiency and oversight. 

The pledge from Xi to support private businesses and affirm their role in the nation’s economy comes as Beijing is grappling with Washington’s escalating efforts to contain China by limiting access to key technologies. 

US President Joe Biden is considering signing an executive order in the coming weeks that will limit American business investment in key parts of China’s economy.

Xi’s comments also mark a shift in Beijing’s view of private business after years of intense regulatory crackdown, especially in the tech sector.

  - Bloomberg