These China Tech Stocks Are Going Big on Robotics
China is emerging as the world leader in robotics. Which companies are poised to benefit the most?
Key Takeaways
China accounts for more than half of global robot installations, making it the clear leader in the robotics industry.
Alibaba, JD.com and Meituan are investing heavily in robotics startups to gain a competitive edge, though their performances in 2025 have varied widely.
While robotics adoption could boost efficiency and long-term growth, it remains to be seen if the companies’ investments will pay off.
There are more robots working in China than in the rest of the world combined.
According to a report released by the International Federation of Robotics on September 25, an army of 295,000 robots has been installed in factories and manufacturing plants across China, compared to just 34,200 in the US.[1] As the graph below shows, more than half of robot installations in 2024 took place in China, up from 45% in 2020 and 26% in 2014.
Interest in Chinese robotic stocks has soared in 2025, fueled by excitement around DeepSeek, an artificial intelligence (AI) startup. The Solactive China Humanoid Robotics Index is up 51.94% year-to-date through September 26 and has surged 81.84% over the past 12 months. The index tracks 20 China- and Hong Kong-listed companies.[2]
A number of smaller players in China’s robotics market have been attracting interest and funding from bigger companies with deeper pockets. Here, we take a look at how tech giants Alibaba [BABA], JD.com [JD] and Meituan [MPNGY] are capitalizing on the robotics opportunity.
Big Tech Splashes the Cash
Alibaba’s cloud division led a $100m funding round in X Square Robot in early September. The Shenzhen-based humanoid startup focuses more on algorithms than hardware. It recently unveiled Wall OSS, an “open-source foundation model for embodied AI” — the AI that is integrated into hardware such as robots.[3]
One of X Space Robot’s rivals, Unitree, is also backed by Alibaba.[4] The maker of humanoids and robot dogs is reportedly planning to file the paperwork for its IPO in Q4.[5]
Meituan has previously backed Unitree,[6] while another startup it has funded, Mech-Mind Robotics Technologies, is set to go public as well.[7] The company makes AI-powered software for robots to help automate tasks such as assembly and quality inspection.
As for JD.com, the e-commerce firm injected money into three startups in July: Engine AI, LimX Dynamics and Spirit AI.[8] It follows on from its backing of AgiBot, alongside Tencent [TCEHY], in May.[9]
Mixed Fortunes for China’s Big Tech Share Prices
The three tech giants may be intensifying their efforts in the robotics space, but their share prices have had a mixed year-to-date.
BABA stock has surged 106.18% through September 26, while JD stock is up 2.43% and MPNGY stock has slumped 33.01%.
BABA vs JD vs MPNGY: AI Revenue and E-Commerce Losses
Alibaba’s strong share price performance has been fueled by “triple-digit growth” in AI-related product revenue in Q1 2026 and a 26% year-over-year increase in sales in the cloud division. Total revenue crept up just 2% from Q1 2025.[10]
JD.com reported a 22.4% jump in sales for Q2 2025. However, the e-commerce company did not see a major boost from AI as it does not have a cloud business.[11]
Meituan also enjoyed higher revenue growth than Alibaba in the most recently reported quarter, up 11.7%. The flipside is that net profit plunged 97%.[12] The company has warned of significant losses in its local commerce business, including food delivery, in the current quarter amid “continued fierce competition”, particularly from Alibaba.[13]
Here is how the fundamentals of the three companies currently compare.
Both BABA stock and JD stock could be considered extremely undervalued given their forward P/S ratios are under 1. While their revenue growth forecast may not excite investors, increased spending on AI and robotics has the potential to boost sales and lift estimates in the quarters ahead.
MPNGY stock could be viewed as undervalued as well, but Meituan’s warning of losses for the current quarter could be a cause for concern, especially if the food delivery war were to intensify further.
Chinese Robotics Stocks: The Investment Case
The Bull Case for Chinese Robotic Stocks
The price war that has engulfed China’s e-commerce market saw Alibaba, JD.com and Meituan agree to end excessive price-cutting and promotions following concerns expressed by the country’s market regulator.[14]
As the three companies continue to vie for market share, speedy order fulfilment and delivery are going to be critical. This is where their investments in robotics will come into play, as deploying robots could give them a competitive edge.
The companies could also benefit from humanoid robots entering the workforce — once they have rolled off the production line. UBS analysts said in July that they expect humanoid robots to start delivering productivity gains in five years.[15]
The Bear Case for Chinese Robotic Stocks
To put it bluntly, there may not be room for all three to emerge as winners. There is also the possibility that some of the big investments being made in robotics startups might not pay off.
Conclusion
China is the clear frontrunner in the global robotics market. Alibaba, JD.com and Meituan are all investing aggressively to grab their share of it. These investments could continue to rise as demand for robotics grows and humanoid robots enter the workforce.
This is for informational purposes only. OPTO Markets does not recommend any specific securities or investment strategies. Investing involves risk and investments may lose value, including the loss of principal. Past performance does not guarantee future results.
[1] https://ifr.org/ifr-press-releases/news/global-robot-demand-in-factories-doubles-over-10-years
[2] https://www.solactive.com/wp-content/uploads/solactiveip/en/Factsheet_DE000SL0PWS8.pdf
[3] https://www.cnbc.com/2025/09/08/alibaba-leads-100-million-investment-in-chinese-humanoid-robot-startup.html
[4] https://www.scmp.com/tech/big-tech/article/3315225/unitree-robotics-reaches-unicorn-status-bytedance-alibaba-tencent-funding
[5] https://www.reuters.com/business/autos-transportation/chinese-robotics-firm-unitree-eyeing-7-billion-ipo-valuation-sources-say-2025-09-08/
[6] https://en.tmtpost.com/post/7263532
[7] https://www.bloomberg.com/news/articles/2025-09-24/meituan-backed-ai-robotics-firm-mech-mind-is-said-to-plan-hk-ipo
[8] https://en.tmtpost.com/post/7632722
[9] https://en.tmtpost.com/post/7576892
[10] https://data.alibabagroup.com/ecms-files/1508695866/dc0ee71c-1968-4e9f-bc2c-23c7b0cb6dd5/EN%20Jun%202025%20Q%20-%20Alibaba%20Earnings%20Call.pdf
[11] https://ir.jd.com/news-releases/news-release-details/jdcom-announces-second-quarter-and-interim-2025-results
[12] https://media-meituan.todayir.com/202508281529101776683541_en.pdf
[13] https://seekingalpha.com/article/4817231-meituan-mpngf-q2-2025-earnings-call-transcript
[14] https://www.scmp.com/tech/big-tech/article/3320452/alibaba-meituan-jdcom-commit-truce-after-regulator-calls-rational-competition
[15] https://www.scmp.com/tech/big-tech/article/3317545/ev-moment-humanoid-robots-may-be-5-years-away-ubs-says