The humanoid robot race has seen an explosion of new firms in China, and the government has been pouring subsidies into developing machines that are becoming smart enough and cheap enough to replace human workers in factories.

Shanghai

Dozens of humanoid robots are being trained for complex tasks at a data lab operated by Chinese startup Agibot near Shanghai. The robots are performing tasks such as steaming shirts, dressing themselves, and preparing sandwiches for extended periods. This effort is part of a broader push by China to develop humanoid robots that can perform labor-intensive jobs, with the support of significant government subsidies.

Recent demonstrations have shown Chinese humanoid robots executing feats such as somersaults and running half marathons. The country's advancements combine sophisticated artificial intelligence platforms, like DeepSeek, with robust hardware manufacturing capabilities. President Xi Jinping recently visited Agibot's lab, drawing attention to the strategic importance China places on this technology in addressing economic and demographic challenges, including tariffs, an aging population, and slower economic growth.

A review of public documents indicates a sharp rise in Chinese government procurement of humanoid robots and related technologies, from 4.7 million yuan to 214 million yuan within a year. Over $20 billion has been allocated to the sector in the past year, and new companies are rapidly entering the market. In 2024 alone, 31 Chinese firms introduced 36 humanoid models, compared to eight by U.S. companies.

China is able to quickly scale production due to its ability to source up to 90 percent of robot components domestically. Current units are priced at approximately $35,000, but some manufacturers anticipate this figure could halve in the near future. The Chinese government is supporting the sector through subsidies, free office space, and public procurement initiatives.

The increase in automation has raised concerns about the impact on employment. Experts suggest that up to 70 percent of China’s manufacturing jobs could be affected, potentially reducing social security contributions. Proposals have been made to introduce unemployment insurance for workers displaced by robots. Industry representatives note that robots are being targeted toward repetitive or hazardous tasks. Authorities see humanoid robots as a solution to growing labor shortages, especially in sectors like elderly care, as the country's population continues to age.



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