China’s Humanoid Robot Boom: Revolution or Risk?

Picture Credit: AGIBOT

As the world marvels at the progress of generative AI, another tech frontier is quietly gaining ground — embodied AI, the technology powering humanoid robots. In China, a surge of activity around this field is transforming everything from factories to elderly care facilities, with profound implications for the workforce and society.

Unlike generative AI, which relies on massive online datasets, humanoid robots must learn by doing — stacking boxes, pouring water, inspecting quality. To speed up this process, cities like Shanghai, Beijing, and Shenzhen are offering rent-free facilities for data collection. At AgiBot’s Shanghai site, 100 robots operated by 200 humans perform daily tasks, creating high-quality training data for their AI models.

Startups like MagicLab are already deploying prototypes into production lines, tackling jobs like assembly and material handling. They’ve integrated powerful AI models, including DeepSeek and ByteDance’s Doubao, to strengthen robot reasoning and task comprehension. But China's biggest edge lies in hardware — the country produces up to 90% of humanoid robot components, keeping costs low and supply chains hyper-efficient. Some robots now sell for as little as 88,000 yuan (about $12,000).

According to Morgan Stanley, Chinese companies introduced 36 humanoid models in 2024, far outpacing their U.S. counterparts. Mass production is ramping up, with firms like UBTech and Unitree leading the charge.

However, the rise of humanoids raises tough questions. With over 120 million people employed in manufacturing, Chinese lawmakers are concerned about job displacement. Experts warn that up to 70% of the sector could be affected, prompting discussions about AI-driven unemployment insurance.

Still, the government is doubling down. With an aging population and increasing demand for elderly care, humanoid robots are being promoted as solutions for labor shortages. Tech giants like Ant Group are developing robots to assist with daily tasks, from tidying rooms to lifting patients.

As China races ahead in the humanoid revolution, the country faces a delicate balancing act — embracing automation while protecting its human workforce. The robots are ready. The question is: are we?