BEIJING – Alibaba founder Jack Ma has returned to China, ending a more-than-a-year sojourn abroad that industry viewed as reflecting the sober mood of its private businesses and which sources said eventually spurred the new premier to reach out.

The return of China’s best-known entrepreneur may help to quell the concerns of the country’s private-sector businesses after a bruising two-year regulatory crackdown.

His public re-emergence provides support for the government’s softening tone towards the private sector as leaders try to shore up an economy battered by three years of Covid-19 curbs.

Online talk of Mr Ma’s return began emerging on Chinese social media early on Monday, before being confirmed by a school he had visited and the newspaper, the South China Morning Post, which is owned by Alibaba.

During his visit, Mr Ma a former English teacher, discussed topics such as artificial intelligence-powered chatbot ChatGPT and also said he hoped to return to teaching one day during his visit, the Yungu School said on its official WeChat account.

The school was founded by Mr Ma and other Alibaba founders in the e-commerce giant’s home city of Hangzhou in 2017.

He returned to China last week, two sources with knowledge of the matter said. Reuters was not able to establish how long he plans to stay in China this time round.

China’s Premier Li Qiang, a close ally of President Xi Jinping, had recognised that Mr Ma’s return to the mainland could help boost business confidence among entrepreneurs and since late last year had begun asking Mr Ma to return, five sources with knowledge of the matter told Reuters.

Some of these efforts involved asking people close to Mr Ma, such as his business associates, to persuade the Alibaba founder in person while he was living in Japan, two of the sources said.

Reuters was not immediately able to establish whether Mr Ma had returned due to Mr Li’s efforts.

Alibaba and China’s State Council, or Cabinet, did not immediately respond to a request for comment.

“Because that means the new top leadership has indeed been re-examining the position and the importance of the platform companies in China’s economic development. The previous restrictive policies on the platform, Internet sector are also expected to be adjusted,” said Mr Zhang.

‘Already beaten’

Mr Ma’s stay abroad came to symbolise the reversal of fortunes for the country’s private sector after his empire and the technology industry were the targets of Beijing’s regulatory crackdown.

A speech he gave in 2020 criticising China’s regulatory system is commonly accepted as the spark for the tighter government scrutiny and triggered his withdrawal from public activity.

In late 2021, he left mainland China and has been seen in photographs in Japan, Spain, Australia and Thailand.

Mr Ma’s return “boosts the sentiment of the broader platform, Internet industry”, said chief investment officer Zhang Zihua at Beijing Yunyi Asset Management.

“Because that means the new top leadership has indeed been re-examining the position and the importance of the platform companies in China’s economic development. The previous restrictive policies on the platform, Internet sector are also expected to be adjusted,” said Mr Zhang.

Mr Zhang added: “The previous restrictive policies on the platform and Internet sector are also expected to be adjusted.”

Alibaba shares jumped more than 4 per cent after news of Mr Ma’s return broke, before giving up some of its gains.

Mr Li has been at the forefront of the government’s effort to bolster the private sector, saying this month that the country’s environment for entrepreneurial businesses will improve and that Beijing will treat all firms equally.

However, companies are hesitant, privately pointing to a lack of new supportive policies and the new regulatory framework the crackdown had brought.

That view is shared by long-time Asia analyst Fraser Howie, who has written several books on China’s financial system.

“I can see how this sort of signals a relaxation, but none of the laws and institutions set up to control the private sector have changed,” he said.

“It doesn’t matter at all to private business because he is already beaten. The State won, Jack has lost control, power, wealth, and it’s not coming back.” REUTERS