Chinese Robot Startup Reaps Rewards After High-Profile Race
Just a few months ago, Noetix Robotics was struggling to find a single customer for its Hobbit-sized robots. Founder Jiang Zheyuan was nervous about burning through investors' money quickly. Then one of its N2 models placed second in the world's first half-marathon for robots.
Now, the Beijing startup founded by the 27-year-old Tsinghua dropout is on track to deliver 2,000 robots by the end of the year. It's in talks to raise roughly $35 million at a $200 million valuation — about as much funding as it's secured since its inception in 2023. The company's staff has doubled to 100, with half of them working on a newly built production floor that churns out 10 bots per day, Jiang said in an interview.
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Tariffs Upend Fashion Sourcing and Disrupt Cash Flow Amid Widening Trade Gap
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For one, most companies analyzed plan to further reduce their exposure to China-based sourcing by cultivating more geographically diverse sourcing portfolios featuring countries that can offer flexibility and convenience. 'I have to admit that, based on the earning calls, companies are more eager to move out of China than I expected,' Lu told Sourcing Journal. While many were espousing a wait-and-see approach earlier in the year, that mentality has shifted. The sourcing exodus from China is well underway, with a number of companies reporting that they plan to limit the percentage of procurement from China to the single digits—or move out of the country entirely. For example, Mike Mathias, chief financial officer at American Eagle, said during an earnings call on May 29 that the company is 'further diversifying our supply chain and on track to reduce our sourcing exposure to China to under 10 percent this year, with fall and holiday season down to low single digits.' 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FedEx recently backed this data, saying that China-to-U.S. volumes 'deteriorated sharply' in early May, resulting in flat international export revenue for the fourth quarter. Rates out of China have still been falling as the demand declines persist, with weekly China-to-North America weekly prices falling 2 percent to $5.18 per kilogram, according to a July 24 update from Freightos. While the IATA indicated the practice of front-loading cargo into the U.S. via air had likely run its course ahead of the July 9 tariff deadline for most country-specific tariffs, the Dimerco report said that demand out of Southeast Asia—particularly from Thailand and Vietnam—is starting to pick up due to the upcoming deadline. Unlike all regions of China and Hong Kong, in which U.S.-bound cargo demand is categorized as 'soft,' the Southeast Asian markets are expected to see an upturn in demand, or already have tight space. Air freight capacity and rates remain stable out of Vietnam, according to Dimerco, but freight rates may rise in early July as the tariff deadline approaches. For Thailand, the freight forwarder recommends importers to book cargo to the U.S. and Canada one week ahead, as current rates are high. India's air freight rates are expected to increase as well as disruptions to global shipping routes are posing challenges for the country's export sector. According to the Dimerco report, tensions in the Middle East may affect capacity and rates for shipments between the E.U., the U.S. and the Indian subcontinent. As June marks the end of the quarter, air freight backlogs out of Singapore are expected to build in July, driven by increased manufacturing activity in electronics and garments. Although rates could see an increase out of southeast Asia in July, it will come after a global cooling down period in part because of the de minimis suspension. According to IATA, cargo freight rates across all trade lanes declined for the first time in 2025 in May, by 2.9 percent year over year and 3.7 percent month over month. More recent data indicates that rates are still down from 2024 levels worldwide. According to WorldACD, which analyzes more than 500,000 transactions per week, rates were $2.43 per kilogram for the week of June 16-22, down 1.2 percent from the year-ago period, but up 1.7 percent from the $2.39 per kilogram the week prior. Sign in to access your portfolio
