Chinese tech giants Meituan and Xiaomi are set to unveil their long-term investment plans in upcoming earnings reports.

Xiaomi plans to invest at least 50 billion yuan (US$6.9 billion) over the next decade to develop mobile processors and enhance its semiconductor capabilities.

The company has also launched a new electric SUV and high-end gadgets powered by self-developed chips, amid ongoing US-China tech rivalry.

Meituan will invest US$1 billion over five years to strengthen its food delivery services in Brazil, as it faces growing competition from JD.com.

Its first-quarter revenue is expected to grow 17%, though earnings may be impacted by increased subsidies and rider benefits.

Meanwhile, Kuaishou Technology is struggling to monetize AI efforts, with its live-streaming ecommerce trailing Tencent and Alibaba.

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🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Chinese tech giants embrace vertical integration amid tech rivalry

Xiaomi’s massive 50 billion yuan ($6.9 billion) investment in developing proprietary mobile processors represents a significant shift toward semiconductor self-sufficiency.

This move comes directly against the backdrop of intensifying US-China technology competition mentioned in the article, suggesting Chinese companies are prioritizing control over critical components.

The strategy aligns with similar vertical integration efforts by global tech leaders like Apple, which developed its own silicon (M-series chips) to reduce dependency on external suppliers.

Xiaomi’s simultaneous expansion into electric vehicles demonstrates how Chinese tech companies are leveraging their manufacturing expertise to enter adjacent high-value sectors.

This diversification strategy appears calculated to insulate the company from smartphone market saturation while capturing value across multiple technology segments.

2️⃣ International expansion becomes critical amid domestic competition pressures

Meituan’s planned $1 billion investment to launch food delivery in Brazil highlights how Chinese tech companies are increasingly looking abroad for growth opportunities.

The article specifically notes this international push comes as Meituan faces “growing domestic challenges from JD.com” back home, which has made “aggressive efforts” in the “hyper-competitive” food delivery space.

This pattern reflects the maturation of China’s digital economy, where major players are facing diminishing returns from domestic market share battles and must find new growth vectors.

The company’s slower projected revenue growth (17%, described as “the slowest since mid-2022”) and increased spending on rider benefits and user subsidies further illustrates the margin pressure in its home market.

Brazil represents a strategic choice for expansion with its large population, growing middle class, and developing digital economy that mirrors conditions that enabled Meituan’s earlier growth in China.

Recent Xiaomi developments

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