Chinese tech giant Alibaba announced plans to invest over $50 billion in artificial intelligence and cloud computing over the next three years, marking its largest commitment to advanced technology. The news drove up shares of the Hangzhou-based company, which operates some of China’s largest online shopping platforms. This surge follows strong sales growth reported last week and a broader rally in Chinese tech stocks. The announcement also comes just a week after co-founder Jack Ma was seen meeting President Xi Jinping, fueling speculation that Beijing may be adopting a more business-friendly stance.
Xi hosted a gathering of some of China’s top tech executives, including Ma, founder of telecommunications firm Huawei and electric vehicle maker BYD. The presence of tycoons such as Ren Zhengfei, Wang Chuanfu, and CATL’s Zeng Yuqun is expected to give investors a boost, with some analysts predicting the meeting could signal officials are ready to allow private firms more leeway in running their businesses.
The meeting was held in the ceremonial Great Hall of the People, a setting Xi often uses when hosting high-profile guests. Attendees were also said to include Liang Wenfeng, the founder of DeepSeek, an artificial intelligence startup that threatens to upend American AI ventures with its lower-cost model. Xi’s interest in the industry has been boosted by a global surge in the sector and China’s efforts to catch up with the rest of the world.
Investors have piled into Chinese technology stocks since the start of the year, with Alibaba — which runs some of the country’s biggest online shopping platforms — seeing its shares soar to three-year highs. Its stock has gained more than 40 percent this year, boosted by speculation that it is poised to benefit from a shift to a more business-friendly policy.
Despite the recent rally, investors remain cautious, with concerns about weaker domestic consumption and a debt crisis in China’s property sector dampening sentiment. The rally, however, could continue into March as investors eye the Two Sessions meetings and corporate earnings due to be released that month, according to some analysts.
The rally for Chinese tech stocks has been fueled by growing demand for services such as ride-hailing, food delivery, and online retail, which are being driven by China’s rising middle class. The industry is being bolstered by a raft of reforms, including the expansion of internet connectivity across the country and steps to reduce barriers to foreign investment. Those measures could help the industry to become more self-sufficient, giving them more room for maneuver as they look to offset a slowdown in Chinese economic growth and rising U.S. tariffs. In the longer term, they could also help China realize its ambitions to lead global technological innovation.
