On June 10, 2025, as trade negotiators from the United States and China gathered in London for another round of contentious talks, a significant shift in China’s tech policy was unfolding—one that could redefine its private enterprise landscape in the face of mounting pressures from the U.S. This change was highlighted in an eye-catching interview with Ren Zhengfei, the founder of Huawei, featured prominently on the front page of The People’s Daily. This move was not merely a publicity stunt; it was a calculated display of a new strategy aimed at countering U.S. export controls while revitalizing China’s tech ecosystem.
The Context: A Decade of Scrutiny
For much of the last decade, China’s private tech sector has faced increased scrutiny and an environment fraught with challenges. Beginning in 2021, a sweeping regulatory crackdown targeted major players such as Alibaba, Tencent, and Didi, sending shockwaves across the business landscape. Entrepreneurs like Jack Ma, once symbols of Chinese innovation, found themselves increasingly sidelined. The message from Beijing was unequivocal: private enterprises were permitted to operate, but only within the rigid confines of the Communist Party’s regulations.
However, the global environment has since evolved dramatically. The COVID-19 pandemic exposed vulnerabilities within international supply chains, while the emergence of generative AI reshaped technological priorities worldwide. Concurrently, the U.S. tightened its export controls, blacklisting numerous Chinese companies and restricting access to advanced technologies such as semiconductors. In response, China began recalibrating its approach to technology and innovation by recognizing the growing importance of its private sector.
Ren Zhengfei: Symbol of a New Narrative
Ren Zhengfei’s interview in The People’s Daily was a strong signal of the shift in China’s tech strategy. His prominence as the resilient leader of Huawei, a company that has withstood U.S. sanctions and the high-profile detention of his daughter, Meng Wanzhou, underscores the new narrative that Beijing aims to project. As noted by a Chinese commentator, “The People’s Daily is using Ren Zhengfei’s voice to assert that the country has not abandoned private enterprise. In fact, private firms are critical to overcoming technological blockades.”
Emphasizing Resilience and Research
In his interview, Ren conveyed determination and resilience, acknowledging the challenges faced by Huawei, particularly its lagging chip technology compared to the U.S. Yet, he emphasized perseverance, remarking that innovations in mathematics and cluster computing could help address application demands. The crux of his message revolved around the importance of investing in basic research—an idea captured in his warning that without such investments, “we lack roots,” rendering any progress vulnerable to unforeseen challenges.
Huawei embodies this philosophy, dedicating a significant portion of its annual R&D budget to fundamental research with no immediate commercial returns. This long-term commitment illustrates a uniquely Chinese approach to innovation, reflecting a readiness to invest heavily and accept setbacks in the quest for technological self-reliance.
The Symbiotic State-Private Sector Relationship
Interestingly, despite being deemed a private entity, Huawei’s success is tightly linked with state support. Analysts argue that Huawei’s ascendance would not have been possible without governmental backing through preferential procurement policies and access to capital. The relationship between the government and Huawei illustrates China’s model of “state-guided entrepreneurship,” starkly contrasting Silicon Valley’s free-market capitalism.
Ren’s interview also points to a notable evolution in China’s stance toward artificial intelligence (AI). Initially approached with caution due to fears of disruption and loss of control, Beijing has now embraced AI development with renewed vigor. The emergence of DeepSeek—a domestic large language model nearing GPT-4 capabilities—underscores China’s ambition to assert itself as a global AI leader, counteracting the narrative of technological inferiority.
A Blend of Strategy and Collaboration
China’s AI strategy showcases an elaborate blend of state guidance, private-sector innovation, and open-source collaboration. The establishment of a “National AI Team,” composed of leading private firms and platforms for data sharing, allows rapid scaling of AI advancements, differing significantly from the more proprietary models adopted by American tech giants.
Ren’s emphasis on foundational science also draws parallels to pivotal moments in China’s history, particularly Deng Xiaoping’s 1978 “Science and Technology Conference.” Just as Deng employed scientific advancement to legitimize his reforms, Xi Jinping is leveraging high-tech nationalism to consolidate authority in the context of slowed economic growth and increasing global decoupling.
The Dichotomy of Rhetoric and Reality
The headline from Ren’s interview—“The More Open a Country Is, the More It Drives Us to Progress”—was undoubtedly crafted for both domestic and international audiences. Amid U.S. restrictions targeting Chinese access to technology, Beijing seeks to position itself as an advocate for openness. Yet, this rhetoric stands in stark contrast to restrictive domestic policies governing the tech sector, where AI regulations emphasize adherence to “core socialist values” and stringent Party oversight.
Domestically, Ren’s message serves as a call to action, especially as China grapples with economic hurdles, soaring youth unemployment, and declining private investment. Xi Jinping is tapping figures like Ren to rebuild trust in the private sector and cultivate a collective purpose. The narrative of “self-reliance under siege” is aimed at inspiring a new era of scientists, engineers, and entrepreneurs to rise to the occasion, enduring hardships in the name of national rejuvenation.
Adapting to a New Reality
Ren’s comments also serve as a direct response to U.S. export controls targeting Huawei since 2018. While these measures have hindered China’s progress in specific domains, they have simultaneously fueled substantial domestic investment and innovation. Huawei’s advancements in 5G and AI technology illustrate the country’s growing capability to navigate U.S. restrictions.
China’s recalibrated tech policy reflects a mixture of confidence and pragmatism. By elevating the role of private enterprises, prioritizing fundamental research, and fostering state-guided collaborations, Beijing is adapting to a rapidly shifting global landscape. For the U.S., the challenge lies not merely in obstructing China’s ascent but in nurturing its own openness and innovative capacity.
In this race for technological supremacy, the aim extends beyond mere competition; it is about crafting a resilient, inclusive, and forward-looking system. Ren Zhengfei’s interview serves as a testament to China’s ambitions—and a reminder of the high stakes involved for both nations.