Why China is investing in AI-powered humanoid robots

Chinese companies are accelerating the commercial deployment of humanoid robots while investing in AI intended to expand the jobs they can perform.[1] The shift puts more emphasis on software than on building the hardware alone.[2] Embodied AI is intended to help robots understand their surroundings, learn new tasks and adapt without needing separate programming for each job.[1] For businesses evaluating the technology, the central question is therefore not only what a robot can do today, but whether its intelligence can be adapted to different tasks and settings.[2][1]

Chinese embodied AI companies raised 93.5 billion yuan, or about $13 billion, across 322 funding rounds in the first half of 2026, according to ITjuzi.[2] The total was five times the amount raised in the same period a year earlier.[1] Funding is increasingly flowing to developers of robot intelligence rather than remaining concentrated among manufacturers.[1] X Square, Galaxea and Spirit AI have each reached valuations of about $3 billion.[1] Robot manufacturers expect margins to come from the “brain” rather than the hardware, a view that helps explain the appeal of software investment.[1]

Companies that combine AI and robotics effectively could gain an advantage in factory automation and logistics, with possible effects on industrial productivity and the global robotics market.[1] But robots were described as too slow and error-prone for most industrial work.[3] A novice trainer might get a humanoid robot to produce one usable movement in 300 attempts, compared with one in 50 attempts for an experienced trainer.[3] That gap is a reminder that deployment decisions should account for the work needed to train systems, as well as their potential range of tasks.[1][3]

Embodied AI is emerging as another front in the technology rivalry between China and the United States.[1] Analysts say US companies lead in some advanced robotic AI systems and have advantages in frontier AI research and access to high-performance computing chips.[1] US export controls make high-end Nvidia chips difficult for Chinese companies to obtain.[1] Chinese developers can draw on manufacturing strengths and close work with robot makers and industrial customers to test and refine systems in real-world settings.[1] They are also trying to reduce computing needs through more efficient models, synthetic data and simulated environments.[1]