An updated edition of the Oct. 30, 2025, article.

Chinese technology stocks, including Tencent Holdings (TCEHY Quick QuoteTCEHY - Free Report) , Bilibili (BILI Quick QuoteBILI - Free Report) , NetEase (NTES Quick QuoteNTES - Free Report) and PDD Holdings (PDD Quick QuotePDD - Free Report) , have gained momentum following October's U.S.-China trade agreement signed in Busan, South Korea. U.S. Trade Representative Jamieson Greer confirmed on Dec. 7 that China met commitments, including terminating semiconductor investigations and resuming agricultural purchases. With tariffs at 49% and rare earth export controls suspended until November 2026, Chinese technology companies demonstrate resilience across sectors despite ongoing structural tensions.

Recent Technological Advancements

SMIC achieved volume production of 5nm chips using deep ultraviolet lithography without restricted EUV equipment in December 2025, powering Huawei's Kirin 9030 processor and representing China's most advanced domestic semiconductor manufacturing achievement. Chinese foundries control more than 25% of global mature-node capacity among top-10 producers, with equipment investment surging 53% year over year despite Western export restrictions.

BYD's November exports surged 326% year over year to 131,935 vehicles, maintaining a 388,000-unit lead over Tesla globally. China's NEV penetration reached 62% in early December, with BYD on track to exceed one million exports in 2025. The company's five-minute charging technology provides a 250-mile range, outperforming Tesla's 15-minute Superchargers while offering advanced driver-assistance systems at no additional cost. 

DeepSeek's V3.2 delivers GPT-5 level performance at $6 million training costs versus $100+ million for Western competitors. Alibaba committed $52.4 billion to AI infrastructure over three years while launching its Qwen reasoning model series. Major players, including Baidu, Tencent and Alibaba, now offer free AI services, accelerating adoption.

The humanoid robotics sector recorded an extraordinary 610 investment deals totaling $7 billion in nine months, up 250% year over year, as EV manufacturers BYD and XPeng integrated humanoid robots into factory operations. COMAC delivered 12 C919 aircraft through 2024 with production capacity at 50 units annually, though delivery numbers fell substantially short of earlier ambitious targets. Supply chain dependencies on CFM International LEAP engines persist, though Southeast Asian market expansion is targeted.

China's defense budget increased 7.2% to $249 billion for 2025. September's Victory Day parade unveiled Type 100 tanks, LY-1 shipborne laser weapons, and YJ-series hypersonic anti-ship missiles. Nuclear stockpiles reached 600 warheads, projected to expand significantly to 1,500 by 2035.

China's medical device market reached $172.9 billion in 2025, supported by 33,000+ manufacturing enterprises representing substantial 27.8% growth from 2020. NMPA approved 65 innovative devices prioritizing AI-powered diagnostics, surgical robotics, and novel biomaterials.

The CR450 bullet train prototype now achieves 400 kilometers per hour. China Railway Rolling Stock Corporation maintained a commanding 56% global market share, while Chinese shipyards secured 38% of new global LNG vessel orders in 2024. Advanced materials achieved 75% completion of Made in China 2025 targets. Export controls on rare-earth materials, synthetic diamonds, and battery components reflect strategic importance. State Grid invested a record $88.7 billion in 2025, expanding ultra-high voltage transmission networks. Energy storage capacity exceeded 100GW — representing 59% of global installations — with $23 billion in smart grid investment.

2026 Outlook

China's Politburo announced "moderately loose" monetary policy, with Goldman Sachs raising GDP forecasts to 4.8%. MSCI China trades at 47% discount to U.S. multiples, presenting opportunities amid stabilizing trade relations.

We believe that rapid advancements in Chinese technology and huge spending on its development efforts offer significant growth opportunities for investors. Our China Tech Screen is an invaluable source for identifying stocks with massive growth prospects in the space.

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4 Chinese Tech Stocks to Watch Right Now

Tencent Holdings, with its dominant social media and gaming platforms, stands to gain from increased consumer spending. This Zacks Rank #1 (Strong Buy) merits close watch in 2026 following December 2025 announcements of record gaming sales generating $10 billion internationally, defying industry slowdowns. Third-quarter 2025 results showed 15% revenue growth with international gaming surging 43%. With 1.4 billion WeChat users and AI integration enhancing advertising and gaming, core businesses remain robust. Management confidence is evident through a 32% dividend increase and ongoing buybacks. China's supportive 2026 policies targeting domestic consumption align with Tencent's diversified ecosystem. You can see the complete list of today’s Zacks #1 Rank stocks here.

Bilibili deserves investor attention in 2026 following its profitability turnaround. This Zacks Rank #2 (Buy) company posted RMB469 million net profit in third-quarter 2025 versus losses in the year-ago period, with adjusted net profit surging 233% year over year. Notably, 13 consecutive quarters of gross margin expansion (36.7%) demonstrate operational excellence, while advertising revenues jumped 23% as brands recognize Bilibili's engaged Gen-Z audience. With 117 million daily users spending a record 112 minutes daily, and monthly paying users reaching 35 million, monetization is accelerating. Management's midterm targets of 40-45% gross margins and December 2025 share option exercises signal confidence in sustained growth.

NetEase presents a compelling investment opportunity for 2026, driven by accelerating global gaming momentum. The December 2025 mobile launch of Where Winds Meet with cross-platform capabilities expands market reach significantly. Third-quarter 2025 gaming revenues surged 11.8% year over year to RMB23.3 billion, demonstrating robust core business strength. This Zacks Rank #3 (Hold) company's partnership with Blizzard strengthened with Diablo IV's Dec. 12 China launch, unlocking substantial domestic revenue potential. NetEase extended its $5 billion share buyback program through January 2029, signaling management confidence while returning value to shareholders. With Sea of Remnants launching in 2026 and continued IP diversification across Marvel, Wuxia, and other franchises, NetEase is strategically positioned for sustained growth as global gaming demand expands.

PDD Holdings presents a compelling investment opportunity for 2026 investors to carefully watch. Following robust third-quarter 2025 results announced in November, the company demonstrated impressive 9% revenue growth and 17% net income expansion, showcasing strong operational strength. With its dual-platform strategy — Pinduoduo dominating Chinese e-commerce and Temu expanding globally — PDD commands significant scale advantages. This Zacks Rank #3 company maintains exceptional financial health with RMB387 billion cash reserves, zero long-term debt, and 25%+ return on equity. Strategic merchant support investments and ecosystem development initiatives successfully position PDD for sustainable long-term growth, making it worth monitoring.