In a hotel lobby on Hong Kong Island, a delivery robot pauses outside one of the lifts as the doors open, and a guest steps out. The robot waits, and then rolls neatly inside. This move looks simple, but it isn’t. To work in the busy hotel, owned by an international chain, the robot must navigate a building that won’t slow down for it. People are often getting in the way, and it must be able to take the lift to the correct floor, and then find the right room. The company behind the robot, Yunji, is a mainland Chinese tech business that is aiming to use Hong Kong as a springboard for successful overseas expansion. We aim to make our product succeed in Hong Kong, and then expand outward, says the firm’s vice-president, Xie Yunpeng.
Hong Kong is becoming increasingly important to such mainland Chinese tech companies as a place to raise money, test products with international clients, and build credibility for overseas expansion. This comes as US and European nations have grown wary of Chinese companies, which some commentators refer to as ‘China risk’ due to fears of state-led espionage and excessive Chinese domination of their tech sectors.
According to a recent report by PricewaterhouseCoopers, the number of mainland Chinese firms listing on the Hong Kong Stock Exchange increased from 30 to 76 last year, marking a 153% rise. Additionally, the investment promotion agency Invest Hong Kong has reported a surge in mainland firms seeking to set up operations in the territory, focusing on innovation and technology.
Xiaomeng Lu of the Eurasia Group highlights that the shift to Hong Kong is driven by geopolitical headwinds that dampen aspirations to float in New York. Experts emphasize that Hong Kong provides a channel for mainland firms to attract global investors and operate without being entirely constrained by the mainland market.
As mainland tech companies like Yunji seek to prove their capabilities in global settings, they also face significant barriers, including heightened scrutiny in the US and Europe regarding security concerns and governance standards. Hong Kong, once a beacon of international business, has seen its appeal diminish due to political changes and the imposition of new security laws. Still, it remains a crucial crossroads for Chinese innovation and expansion, with firms like Yunji and MiningLamp Technology capitalizing on the city’s strategic advantages.
