Chinese billionaire Jack Ma’s reappearance has sparked speculation about Beijing easing pressure on the private sector, but the real story runs deeper. Alibaba, Ma’s company, remains a potent symbol of China’s private sector success. But the company itself has changed from a retail giant to a pillar of China’s artificial intelligence and cloud computing ambitions, and its commercial dominance now takes a back seat to its strategic value to Beijing.

This convergence of economic necessity and industrial policy signals a broader shift. Private enterprise is again essential—but only within boundaries set by the state. Alibaba’s cloud infrastructure has become central to China’s push for self-sufficiency, tethering its future even more closely to national priorities.

Chinese billionaire Jack Ma’s reappearance has sparked speculation about Beijing easing pressure on the private sector, but the real story runs deeper. Alibaba, Ma’s company, remains a potent symbol of China’s private sector success. But the company itself has changed from a retail giant to a pillar of China’s artificial intelligence and cloud computing ambitions, and its commercial dominance now takes a back seat to its strategic value to Beijing.

This convergence of economic necessity and industrial policy signals a broader shift. Private enterprise is again essential—but only within boundaries set by the state. Alibaba’s cloud infrastructure has become central to China’s push for self-sufficiency, tethering its future even more closely to national priorities.

Chinese President Xi Jinping’s meeting this week with top CEOs sought to repair some of the damage done by previous policies. Over the past year, opaque and abrupt detentions of business leaders had made success a liability, stoking anxiety in the private sector. Many of these detentions appeared less about clear legal violations than cash-strapped local governments using fines and seizures for revenue.

In 2024 alone, executives from more than 80 listed companies were detained, often by authorities from regions unrelated to their businesses—a practice dubbed “long-range........

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