After the space race, China wants to win in humanoid robots
But this isn't a factory floor… yet.
It's a data lab run by Chinese startup AgiBot – and it's part of China's race to lead the global humanoid revolution and transform the way we live, work and play.
Yao Maoqing is a partner at the company.
:: Yao Maoqing, President of AgiBot
'We want to use general purpose robots to create unlimited productivity. Just imagine that one day in our own robot factory, our robots are assembling themselves.'
Chinese humanoids are already performing increasingly complex feats like somersaults and running a half-marathon.
President Xi Jinping recently inspected Agibot's products at a lab in Shanghai.
And his visit highlights Beijing's long-term strategy – using humanoids to counter U.S. tariffs, an aging population and slowing economic growth.
For the first time, Reuters is reporting details about how China's technological advances are allowing already impressive hardware to be paired with the software needed to make these robots economically viable.
Here, the prowess of homegrown artificial intelligence platforms like DeepSeek is being combined with abundant government support.
Reuters spoke to more than a dozen people - from robot makers and investors to analysts and users - who say the breakthroughs are moving robots from spectacle to solution.
And could revolutionize China's manufacturing supremacy as it competes with the U.S.
The Chinese government plans to build its edge by focusing on data training and the sophistication of its AI models.
And authorities are handing out generous subsidies or free office space for humanoid firms.
Over $20 billion has been allocated to the sector over the past year.
The government is also a key buyer, according to a Reuters review of tender documents.
State procurement of humanoid robots and related tech jumped to 214 million yuan in 2024 from 4.7 million the year before.
The Chinese government didn't respond to questions about its role in supporting the development of humanoid robots.
There has also been an explosion of new firms in the sector.
In 2024 alone, 31 Chinese companies unveiled 36 competing humanoid models.
U.S. companies presented eight – according to Morgan Stanley.
The nation's clearest advantage though is its domination of humanoid hardware.
Up to 90% of robot parts can be made locally – so Chinese firms can scale quickly.
Current units can cost around $35,000 but three manufacturers told Reuters they predict costs to halve, perhaps within a year.
Rui Ma is a tech analyst.
:: Rui Ma, China tech analyst
"The way the Chinese government looks at it is that human robotics can be the next EV industry where by investing in the entire manufacturing supply chain, you can come up with a product that is better, cheaper and globally exportable from China."
But the rise of humanoids has sparked concerns for the current workforce.
One expert warned up to 70% of China's manufacturing jobs could be at risk…
And that could lead to a steep decline in social security contributions.
The chairman of domestic AI firm iFlytek has suggested creating an unemployment insurance program for workers replaced by robots.
While one industry professional told Reuters that its prototypes were targeting the boring, repetitive or dangerous jobs that humans don't want to do.
Beijing though sees the technology as key to plugging labor shortages in areas such as elderly care. Demand is only increasing as China's 1.4 billion population ages.
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