China AI Weekly — October 25, 2026
Illustration: AI-generated · Inside China AI
Chinese vendors accounted for about 95% of global humanoid robot shipments in early 2026, as US restrictions shifted volumes to Europe. Meanwhile, the EU is developing a 'kill switch' to exclude Chinese firms from the single market if Beijing is found to be engaging in economic coercion. China has also begun deploying its 60 billion yuan ($9 billion) state-backed AI fund to support domestic large model developers. These moves highlight the growing competition and regulatory tension between China and Europe in AI and robotics.
Markets & Investments · Humanoids
■ Chinese Vendors Supply 95% of Global Humanoid Robots in Early 2026
The story: IDC data shows Chinese vendors led global humanoid robot shipments in early 2026, as US restrictions redirected volume to Europe.
- Chinese vendors accounted for about 95% of global humanoid unit shipments in the first half of 2026 (IDC).
- On July 28, 2026, the FCC added foreign-made advanced robotic devices to its Covered List (IDC).
- Europe alone buys more than double the US share of robots (IDC).
- IDC’s trade policy model puts US humanoid robot revenue 58% below the pre-restriction baseline by 2030 (IDC).
Why it matters for Europe
Europe now receives the majority of Chinese humanoid robots, as US restrictions shift supply. European companies and buyers face increased exposure to Chinese vendors, who accounted for about 95% of global shipments in early 2026.
→ Go deeper: full story.
Regulation & Policy · Policy
■ EU prepares 'kill switch' to block Chinese firms from market
The story: The EU is developing a tool that could immediately exclude Chinese companies from the single market if Beijing is found to be engaging in economic coercion.
- The EU is developing a new 'kill switch' that could immediately kick Chinese companies out of the single market if Beijing is deemed to be engaging in economic coercion (South China Morning Post).
- The EU's move is backed by a dramatic pivot from Germany (South China Morning Post).
- Beijing has warned the bloc not to 'fantasise' that a hardline approach will force it into further concessions (South China Morning Post).
Why it matters for Europe
European companies and buyers could face sudden changes in supply chains or technology partnerships if Chinese firms are excluded from the market. Regulators may need to prepare for rapid enforcement and potential responses from Beijing, affecting market stability and access.
→ Go deeper: full story.
Models & Technology · Open Models
■ Kimi K3.1 Pro: China’s Open-Weight Contender Closes In on the Frontier
The story: Moonshot AI has released Kimi K3.1 Pro, which ranks fourth on the Artificial Analysis Intelligence Index, and promises to publish the model weights by 4 November.
- K3.1 Pro scores 55 on the Artificial Analysis Intelligence Index, behind only Claude Opus 5.5 (58), Claude Sonnet 5.5 (56) and Muse Wonder Full (56) (The Decoder).
- Moonshot plans to release the weights by 4 November 2026; until then the model is available through Kimi’s apps and API (The Decoder).
- The model has 2.8 trillion parameters, 104 billion of them active, and a one-million-token context window, according to the company (The Decoder).
- API prices fall to $2 per million input tokens and $10 per million output tokens, from $3 and $15 (The Decoder).
- Moonshot says it removed cyber-related data from training, arguing that no open-weights model should push the frontier of offensive cyber capabilities (The Decoder).
Why it matters for Europe
If the weights arrive as promised, European companies could run one of the strongest models available on their own servers, without sending data to a US or Chinese cloud. Whether they may use it commercially depends on the licence, which Moonshot has not yet published. Our Model Picker will add it when it does.
→ Go deeper: full story.
Markets & Investments · Frontier Models & Platforms
■ China Launches $9 Billion State-Backed AI Investment Fund
The story: China has started deploying a 60 billion yuan ($9 billion) state-backed AI fund to support leading domestic large model developers.
- China’s 60 billion yuan ($9 billion) state-backed AI investment fund has begun deploying capital into top domestic large model developers (Caixin Global).
- The national AI fund has already backed a batch of projects described as high-quality by Wei Wei, director general of the department of science and technology at the Ministry of Industry and Information Technology (MIIT), at a Monday 19 October press conference (Caixin Global).
Why it matters for Europe
China’s $9 billion state-backed AI fund could accelerate the development of domestic large models, increasing competition for European AI firms and technology buyers. European regulators and markets may face new challenges as Chinese-backed AI projects seek international partnerships or market access.
→ Go deeper: full story.
Companies & Startups · Smart Vehicles
■ Xpeng delivers first L03 vehicle to European customer in Paris
The story: Xpeng CEO He Xiaopeng personally handed over the first L03 vehicle to a French customer in Paris in October 2026, marking the start of L03 deliveries in Europe.
- Xpeng CEO He Xiaopeng personally handed over the first European-delivered Xpeng L03 to a French customer in Paris in mid-October 2026 (electrive).
- The European version of the XPeng L03 is available as a purely battery-electric vehicle (BEV) or with a range extender (electrive).
- The BEV version offers ranges between 445 and 520 kilometres, depending on the equipment variant (electrive).
- At fast-charging stations, the manufacturer specifies a charging time from 20 to 80 per cent in around 20 minutes, according to the company (electrive).
- The starting price in Germany is €35,600 (electrive).
Why it matters for Europe
Xpeng’s L03 launch introduces a new Chinese electric vehicle option to European buyers, with a starting price of €35,600 in Germany. The entry may increase competition for local carmakers and prompt regulators to review standards for battery range and charging infrastructure.
→ Go deeper: full story.
Europe x China · Industrial AI
■ Europe and China Compete for Leadership in Industrial AI
The story: In Bloomberg’s analysis, Europe and China are both seeking to lead in industrial AI — China by prioritising factory automation, Europe by leveraging its industrial conglomerates.
- Bloomberg analysis suggests Europe and China are both seeking to lead in industrial AI, with China prioritising factory automation and Europe leveraging its industrial conglomerates (Bloomberg).
- Bloomberg analysis suggests China’s AI systems are close to matching the performance of leading US rivals (Bloomberg).
- The leadership in Beijing has made industrial AI a national priority, according to official statements (Bloomberg).
Why it matters for Europe
China’s focus on industrial AI could accelerate automation in manufacturing, affecting European suppliers and buyers. If Bloomberg’s assessment holds, European conglomerates face more competition as China’s AI systems approach the performance of US leaders.
→ Go deeper: full story.
Company in focus
■ Unitree Robotics
This week: Unitree Robotics shares rose 16.15% on 19 October 2026, as China's embodied AI and robotics industry reported growth in production, revenue, and new national standards for humanoid robots.
- Unitree Robotics shares surged 16.15 percent on a Monday 19 October (Global Times).
- Unitree closed at 495.92 yuan per share, with a market capitalization of 200.58 billion yuan (Global Times).
→ Read our profile: Unitree: The $9 Billion Company Behind the Viral Robots.
■ Quick hits
- Chinese EV sales reach record in Europe as market grows 10%. European new-car sales rose by 10 percent in September 2026, with Chinese electric vehicle sales hitting another record, according to preliminary Dataforce figures. (Automotive News).
- Chinese Autonomous Driving Firms Expand Technology Partnerships in Europe. Chinese autonomous driving companies such as QCraft, XPENG, Momenta, ZYT, and Horizon Robotics are increasing their presence in Europe through technology demonstrations, partnerships, and local headquarters. (Gasgoo).
- US Bans Federal Agencies From Using DeepSeek AI Products. The US Department of Homeland Security has prohibited civilian federal agencies from buying or using DeepSeek products due to security concerns. (Caixin Global).
- US Sanctions Chinese AI Venture MiraclePlus Over Google Secrets Case. The US government imposed sanctions on MiraclePlus and affiliates for providing seed funding to a Chinese startup accused of stealing Google AI trade secrets. (Bloomberg).
Number of the week
95%
Chinese vendors supplied 95% of global humanoid robot unit shipments in the first half of 2026. By comparison, European robot makers accounted for a much smaller share of the global market in this period.
Graphic: Inside China AI · Source: IDC, 22 October 2026.
■ From us this week
- Galbot: China’s Robot Shopkeeper Is Everywhere at Home and Nowhere in Europe — In Lisbon, Galbot’s listed speakers are its robots. China’s most valuable unlisted humanoid company runs 170+ robot kiosks at home — and has no confirmed customer…
- Manus AI: The Agent Company Beijing Would Not Let Go — Meta agreed to pay $2 billion. Beijing said no. Six months later Manus raised $500 million on its own — and nobody will say what it is worth. Profile of the agent…
Every figure above is linked to its source. Company figures are marked as such. Where we interpret, we say so. Corrections: press@insidechinaai.com · Our editorial standards.
In the directory: DeepSeek · Momenta · Unitree · Galbot · Manus AI — all companies
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