Chasing unicorns: why Xi is love-bombing China's entrepreneurs

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2024-07-25

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A handpicked article read aloud from the latest issue of The Economist. Amid economic gloom, Xi Jinping wants to encourage Chinese startups. But entrepreneurs remain pessimistic. Listen to what matters most, from global politics and business to science and technology—subscribe to Economist Podcasts+ For more information about how to access Economist Podcasts+, please visit our FAQs page or watch our video explaining how to link your account.
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  • The Economist Hello, it's Alice Su here.

  • I'm the co-host of Drum Tower, our weekly podcast on China.

  • You're about to hear an article from the latest edition of The Economist.

  • Enjoy.

  • China's leader Xi Jinping worries about black swans,

  • unexpected crises and gray rhinos, big problems that are ignored.

  • Recently, he has been fretting about vanishing unicorns too.

  • In May,

  • he asked a group of bosses to explain why fewer Chinese start-ups were turning into these beasts –

  • privately held start-ups with a valuation of a billion dollars or more.

  • In June, the State Council, China's cabinet,

  • acknowledged that investors were fearful of putting money into risky new ventures and that it was difficult to cash out.

  • Reviving China's flagging entrepreneurial spirits has become urgent.

  • As this article was published,

  • the Communist Party's Central Committee ended a four-day meeting in Beijing.

  • The meeting decided to place reform in a more prominent position.

  • During the event, new data added to gloom,

  • showing that GDP growth in the second quarter of 2024 slowed to 4.7% year-on-year.

  • Successful start-ups could boost growth and technological self-sufficiency,

  • which are key party aims.