The China Round is a weekly report tracking venture and strategic investment activity across China’s core technology sectors: AI, robotics, semiconductors, new energy and materials, aerospace and defense, and frontier tech.
The China Round is free, published every Friday, and written for investors, operators, and founders tracking where China’s tech capital is moving and why it matters.
About the author: Dermot McGrath is Irish, based in Shanghai, a decade in China’s tech and investment ecosystem, fluent Mandarin. Co-founded a VC fund scaled to nine-figure AUM. Now running ZenGen Labs, a cross-border strategy studio covering AI, robotics, and deep tech.
Happy Friday everyone. Let’s get straight into it.
Where the Money Went
163 deals across seven sectors. 37 disclosed exact amounts, totaling $5.9 billion (~¥42.4B). Strip out Kling AI’s $3 billion debut raise and the remaining 36 deals still disclosed $2.9 billion (~¥20.8B). Robotics led on volume (37 deals).
🧠 AI (35 deals)
Kling AI’s $3 billion first external raise dominated the sector and the week (covered below). Several ¥1 billion+ growth rounds closed, including DexForce Technology and Tripo AI (both in Radar below), and Xellar Biosystems (耀速科技), whose organ-on-chip platform screens drug candidates on chip-based organ models (covered below). At the other end, a cluster of seed and angel rounds backed brand-new entrants. Klaren Intelligence (厘清智能), a startup building world models, raised several hundred million RMB with HongShan (红杉), Hillhouse, and Shunwei all on the cap table for a seed round. Founded in April 2026. Eighteen AI companies raised at valuations of ¥100 million (~$14M) or less.
⚡ New Energy & Materials (17 deals)
Mostly sub-¥100 million (~$14M) rounds across battery materials, energy storage, and specialty chemicals. Yingong Technology (隐功科技) raised ¥100 million (~$14M) in a Pre-A for nanocomposite materials, and Anputai (安普态) closed a near-¥100 million A round in advanced insulation, both backed by state-linked funds.
🔬 Semiconductors (31 deals)
31 deals, led by Gowin Semiconductor’s Pre-IPO (covered below). EDA, chiplet packaging, and MEMS sensors each drew 1 to 3 deals, alongside camera sensor chips and power management ICs. Qili Semiconductor (齐力半导体) raised ¥100 million (~$14M) for chiplet packaging at Zhangjiang, and Jiyi Semiconductor (集溢半导体) raised ¥130 million (~$18M) for analog chip design. State capital appeared in investor lists across the sector, with Guangdong, Jiangsu, and Zhejiang government funds all active.
🤖 Robotics (37 deals)
The most active sector by deal count, with three mega-deals (AI2 Robotics, X Square Robot, and Boundless Motion, all covered in Radar below). Below those, the deals split between platform-backed humanoid companies and smaller startups building components, sensors, or manipulation software. Fifteen deals closed at valuations of ¥100 million (~$14M) or less.
💡 Frontier Tech (11 deals)
Eleven deals. SpinQ (量旋科技) raised ¥1 billion (~$139M) in a D-round for quantum computing (more in Radar below). Xinghe Fusion’s (星核聚变) ¥833 million (~$116M) debut was the largest first-round raise in Chinese private fusion, backed by 25 investors including SAIC Motor. Two other fusion companies also raised this week, Andong Jubian (安东聚变) and Chaoci Xinneng (超磁新能), making it a three-fusion-deal week. SynSense (时识科技) closed several hundred million RMB for neuromorphic chips, event-driven processors that react only to changes in a scene rather than analyzing every frame, cutting power consumption for always-on cameras and sensors.
🚀 Aerospace & Defense (8 deals)
Eight deals, dominated by Hongqing Technology’s ¥1.3 billion (~$181M) Pre-B for its satellite constellation (covered below). Puxing Aerospace (谱星航天) raised several hundred million RMB across combined rounds for optical remote-sensing payloads, with plans for a 1,024-satellite constellation.
⚙️ Other Adv. Manufacturing (24 deals)
24 deals spanning optoelectronics, industrial equipment, and consumer hardware. Sinoscience Fullcryo’s ¥1 billion (~$139M) Pre-IPO for cryogenic equipment (covered below) was the sector’s largest. CAYE raised ~¥400 million (~$56M) in a B-round for coffee machines (covered below). At the other end, AIVELA raised several million dollars for its smart ring.
Spotlight
Kling AI (可灵AI)
First External Round, $3B (~¥21.6B), Valued at ~$18B (~¥129.6B)
Kuaishou’s video generation platform raised its first outside capital, with $500M in annualized revenue and a Hong Kong IPO planned within 12 months.