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In a Hong Kong Island hotel lobby, a delivery robot halts briefly outside an elevator as its doors slide open and a guest steps out. After a pause, the machine moves smoothly inside.

The maneuver appears routine, but it reflects complex engineering. Operating in a busy hotel owned by a global chain, the robot must function seamlessly in an environment that does not adjust for it.

It navigates crowds, enters lifts independently, selects the correct floor and ultimately locates the designated room.

The robot is produced by Yunji, a mainland Chinese technology firm using Hong Kong as a launchpad for international growth.

"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 playing an increasingly pivotal role for mainland Chinese tech companies seeking to raise capital, test products with global clients and establish credibility abroad.

That shift comes as the United States and Europe grow more cautious toward Chinese firms. Concerns—often described by analysts as “China risk”—include fears of state-backed espionage and dominance in key technology sectors.

As a result, mainland companies are encountering greater difficulty securing funding, customers and trust in Western markets, prompting many to prioritize Hong Kong as an entry point.

Data from PricewaterhouseCoopers shows that 76 mainland Chinese firms listed on the Hong Kong Stock Exchange last year, up from 30 in 2024, marking a 153% increase.

Invest Hong Kong, the city’s investment promotion agency, has also recorded a rise in mainland firms establishing or expanding operations there, particularly in innovation and technology.

Xiaomeng Lu, a director at political consultancy Eurasia Group, says mainland firms are “shifting to Hong Kong” for primary listings as “geopolitical headwinds dampen their dreams” of launching in New York.

"These days Hong Kong is their best hope to attract global investors and position themselves as a player not fully constrained by the boundary of the mainland market," she adds.

Wendy Chang of the Mercator Institute for China Studies says the city is “fashioning itself as a connector to the outside world for Chinese companies,” supported by policies that accelerate listings and ease market entry.

The trend aligns with Beijing’s broader push for greater “technology self-reliance.”

Reducing dependence on foreign hardware and software has become central to economic strategy, particularly in sectors such as artificial intelligence and semiconductors.

This emphasis is embedded in China’s 15th Five-Year Plan, which frames technology as both an economic and strategic priority amid ongoing tensions with the United States.

Within that landscape, Hong Kong’s importance has grown. Paul Triolo, a Washington-based partner at consultancy DGA Group, says the “strategic value of Hong Kong for high-tech Chinese companies” has increased.

Alicia Garcia-Herrero, chief economist for Asia-Pacific at Natixis, says the city offers mainland firms an opportunity to demonstrate compliance with international standards while building confidence among global investors and customers.

For Yunji, that involves proving its robots can perform effectively in international settings. The company, which develops service robots for hotels, hospitals and factories, listed in Hong Kong in October last year to broaden its investor base beyond mainland China.

MiningLamp Technology, an artificial intelligence software firm, also established operations in the city that month. Its founder, Wu Minghui, describes Hong Kong as a “data compliance transfer station,” where companies can test cross-border data management and refine regulatory processes before expanding further.

Despite these advantages, success in Hong Kong does not guarantee smooth entry into overseas markets.

Authorities in the United States and Europe have tightened scrutiny of Chinese investments and technology over national security concerns, particularly regarding data access and critical infrastructure. Countries including the US and UK have also restricted or moved to phase out Chinese telecom suppliers.

Investor concerns extend to corporate governance and transparency. The Luckin Coffee scandal, in which the company admitted fabricating sales, remains a warning sign after its shares were delisted from New York’s Nasdaq in 2020.

At the same time, Hong Kong itself has become less attractive to some international investors and businesses.

Following mass pro-democracy protests in 2019, authorities introduced sweeping national security legislation. Dozens of activists, opposition figures and journalists have since been arrested or imprisoned under related laws.

Officials in Beijing and Hong Kong say the measures were necessary to restore stability, while critics argue they have significantly reduced political freedoms.

Triolo notes that even with a presence in Hong Kong, mainland firms remain subject to regulatory oversight from Beijing, including rules on cybersecurity, data management and public-facing artificial intelligence.

"Hong Kong is not really a geopolitical shield [for such firms]," he says, adding that it "only partially mitigates" their risks.