China's AI-powered humanoid robots, backed by heavy state investment, aim to transform manufacturing and labor efficiency amid global industrial competition.
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| Driven by government funding and cutting-edge AI, China’s humanoid robots are entering factories, aiming to cut costs, boost efficiency, and reshape industry norms. Image Courtesy: Agibot |
Shanghai, China — May 13, 2025:
In a sprawling warehouse on the outskirts of Shanghai, dozens of humanoid robots operated by engineers are performing repetitive tasks — folding clothes, opening doors, and even preparing sandwiches. This facility, run by Chinese startup AgiBot, is the forefront of China's drive to revolutionize manufacturing with AI-powered humanoid robots.
Operating up to 17 hours a day, the goal is to collect vast amounts of task-specific data to train the robots' “brains” — advanced embodied AI systems. "Imagine our robots one day assembling themselves," said Yao Maoqing, a partner at AgiBot.
President Xi Jinping’s visit to AgiBot in April, where he joked about robots forming a football team, underscored the strategic importance of this sector. As the U.S. and China continue to negotiate tariffs and manufacturing dominance, Beijing sees humanoid robotics as part of a new industrial revolution.
The government is fueling this vision with aggressive subsidies — over $20 billion in the past year — and is setting up a 1 trillion yuan ($137 billion) fund for AI and robotics startups. Cities like Shenzhen and Beijing are offering additional incentives, including free space and multi-million yuan grants.
Currently, humanoid robots are making strides in agility and functionality. Chinese developers have showcased robots performing complex physical tasks — somersaults, long-distance running, and football. But it's the merging of hardware with increasingly capable AI from domestic leaders like DeepSeek that is enabling real-world deployment.
According to analysts, China's advantage lies not only in AI innovation but also in hardware. The country can produce up to 90% of robot components domestically, slashing costs. Some startups are already offering humanoids for as little as 88,000 yuan ($12,000). Bank of America forecasts the global market could see one million humanoid units sold annually by 2030, with prices expected to halve within five years.
To support training data collection — a major hurdle for AI development — local governments are helping companies like AgiBot set up dedicated data centers where hundreds of robots perform real-world tasks under human guidance.
MagicLab, another Chinese AI robotics firm, has begun trial deployments in quality control and assembly lines. CEO Wu Changzheng noted the integration of AI models like DeepSeek and Alibaba's Qwen has enhanced their robots’ cognitive capabilities.
While mass production looms, concerns grow over the implications for China’s 123 million manufacturing workers. At recent legislative sessions, experts discussed AI-driven job displacement. Proposals include an AI unemployment insurance scheme to cushion the transition.
Still, the government sees strategic benefits, especially in sectors facing labor shortages like elderly care. National plans already promote robotic integration, and tech firms like Ant Group are developing elderly-care humanoids.
“Within five to ten years, these robots could handle household chores, assist with mobility, and support elderly residents,” said Yao. With scale, capability, and state backing, China’s humanoid robots are no longer science fiction — they’re entering the production line.