China’s Humanoid Robots Poised to Revolutionise Global Manufacturing

Backed by AI and state funding, China’s humanoid robots are set to transform industry, with major implications for the global economy and workforce

Robot Workforce in the Making

In the suburbs of Shanghai, humanoid robots are being trained for real-world tasks—folding T-shirts, preparing sandwiches, and opening doors. These robots are part of a growing effort by Chinese startup AgiBot, which operates a data collection centre for up to 17 hours a day to train its robots in practical, human-like tasks.

The company’s ambition? To create self-assembling robots for its own production lines.

“Imagine a factory where our robots build themselves,” said Yao Maoqing, AgiBot’s partner.

This vision reflects China’s broader goal of leading a new industrial revolution driven by robotics and artificial intelligence (AI).

Beijing’s Strategic Push for Humanoid Robotics

President Xi Jinping’s visit to AgiBot’s facility signals the strategic importance China places on humanoid robotics. As trade tensions with the US persist and China faces an ageing population and slowing growth, AI-powered robots are seen as a vital tool to sustain productivity.

China aims to leap ahead in manufacturing by using robots to perform labour-intensive tasks, reducing reliance on human workers and foreign technologies.

AI Breakthroughs Powering the Change

China’s rapid progress in AI—led by firms like DeepSeek—is a game-changer for humanoid robotics. Advanced AI is now making robots smarter and more capable, allowing them to transition from novelty to necessity.

Unlike generative AI models trained on vast online data, humanoid robots require interaction with physical environments to learn. Tasks such as stacking boxes or pouring liquids require specialised, high-quality data. To meet this need, Shanghai and other cities have provided rent-free spaces for robot training centres.

MagicLab, another robotics firm, is already deploying robots in factories for assembly and quality control. Their integration with leading AI models, including those from Alibaba and ByteDance, demonstrates the commercial readiness of this technology.

Massive Government Support and Rapid Innovation

Over £15 billion ($20 billion) in government subsidies has poured into AI and robotics firms in the past year. Additional city-led funds and procurement incentives are further accelerating growth.

This state support has led to an explosion of innovation: 36 new humanoid models were unveiled by 31 Chinese companies in 2024—compared to just eight by US firms. Some Chinese robots are now priced as low as £10,000 ($12,000), with costs expected to fall further.

China's control over up to 90% of robot components gives it a clear advantage in reducing production costs. Analysts predict global humanoid robot sales could hit 1 million units per year by 2030.

Job Displacement vs. Labour Shortages

Despite the promise, there are growing concerns about job losses. China’s manufacturing sector employs over 120 million people, and up to 70% of these roles could be affected by automation, according to lawmakers.

Calls are growing for safety nets such as AI unemployment insurance to support displaced workers. However, officials argue robots can fill roles that are dangerous, dull, or physically demanding.

Humanoid robots are also being integrated into elderly care, as China’s population continues to age. New plans include using robots to assist with tasks like mobility and daily living support.

A Technological Turning Point with Global Implications

China’s investment in humanoid robotics, supported by state funding and AI innovation, positions it as a global leader in the next industrial revolution. With potential applications ranging from manufacturing to elderly care, these robots may soon become essential to everyday life.

While challenges remain—particularly around employment—China’s bet on robots could deliver long-term productivity gains and reshape the global supply chain.

For the rest of the world, including the UK, the rise of Chinese robotics is both a challenge and an opportunity: one that could redefine how we compete, collaborate, and innovate in the AI era.

Sources: (Investing.com, Reuters)