How China's need to come first in AI race drove the rehabilitation of 'Crazy' Jack Ma

The colourful founder of Alibaba fell from favour in 2020. Now he could be givena key role to play in Xi Jinping’s plans, writes.

- James Kynge

Jack is back! Or to be precise, a quieter, chastened and less conspicuously wealthy version of Jack Ma, a colourful Chinese tech entrepreneur who fell from grace in 2020, has returned to official favour in Beijing. This shift says a lot about the priorities of China's leadership, especially its ambitions to dominate a future animated by AI.

"Crazy Jack" earned his nickname during the early years of Alibaba, the e-commerce giant he built into one of China's most valuable companies. The unconventional corporate culture he created had staff doing handstands during breaks from punishing work schedules. He became China's most famous businessman by far, jetting off to meet world leaders and indulging in cosplay on stage at Alibaba's annual parties (his Michael Jackson act in 2017 remains a YouTube hit).

Ma fell out with Beijing's mandarins not because of his audacious outfits but for daring to criticise them in public. He told a conference that China's financial regulators lacked innovation and that stateowned banks had a "pawnshop mentality". A crackdown followed, costing him his public visibility and perhaps at least half of his wealth.

In February, he got a second chance. Dressed in a sombre dark suit, Ma and other top tech bosses attended a meeting with Xi Jinping, China's authoritarian leader.

Although Ma did not speak, TV footage showed Xi shaking hands with him a sign of partial rehabilitation.