In a sprawling warehouse on the outskirts of Shanghai, dozens of humanoid robots are tirelessly performing tasks such as folding T-shirts, making sandwiches, and opening doors.
Operating 17 hours a day, these robots, developed by Chinese startup AgiBot, are part of a massive data-collection effort to train artificial intelligence (AI) models that could transform manufacturing.
As China faces trade tensions with the United States, a declining population, and slowing economic growth, the nation is betting heavily on AI-powered humanoid robots to reshape its industrial landscape and maintain its position as the world’s manufacturing powerhouse.
China’s ambition to lead the global robotics industry is not new. In 2023, the Ministry of Industry and Information Technology outlined a plan to mass-produce humanoid robots by 2025, with the goal of establishing them as a key driver of economic growth by 2027.
This vision is now coming to fruition, fueled by significant government support and breakthroughs in AI technology. Chinese President Xi Jinping’s recent inspection of AgiBot’s facilities in Shanghai underscores the strategic importance of this sector to Beijing.
Unlike traditional industrial robots, which are often large, stationary arms designed for repetitive tasks like welding, humanoid robots are versatile and mobile, capable of navigating complex environments and performing a wide range of functions.
Companies like AgiBot and MagicLab are leveraging AI models such as DeepSeek, Alibaba’s Qwen, and ByteDance’s Doubao to develop the “brains” of these robots, enabling them to handle tasks like quality inspection, material handling, and assembly with unprecedented precision.
Yao Maoqing, a partner at AgiBot, envisions a future where robots assemble themselves in factories, a scenario that could dramatically reduce labor costs and increase efficiency.
“Just imagine that one day in our own robot factory, our robots are assembling themselves,” he said.
This ambition reflects China’s broader goal of addressing labor shortages—projected to reach nearly 30 million manufacturing workers by 2025—caused by an aging population and younger generations increasingly avoiding factory jobs.
China’s government is playing a pivotal role in the humanoid robot boom.
Over the past year, more than $20 billion has been allocated to the sector, with Beijing establishing a one-trillion-yuan ($137 billion) fund to support AI and robotics startups.
State procurement of humanoid robots and related technologies surged to 214 million yuan in 2024, up from just 4.7 million yuan in 2023.
Local governments are also stepping in. Shanghai authorities have provided rent-free premises for AgiBot’s data-collection site, where approximately 100 robots, operated by 200 humans, work daily to generate training data.
In Shenzhen, a 10-billion-yuan AI and robotics fund has been created, while Wuhan offers subsidies of up to 5 million yuan for companies meeting procurement and sales targets, along with free office space.
Beijing’s municipal government launched a robotics fund in 2023, offering up to 30 million yuan to accelerate product development.
This financial backing, combined with China’s dominance in hardware production—capable of manufacturing up to 90% of humanoid robot components—has lowered barriers to entry and positioned the country as the global leader in humanoid robot manufacturing.
According to Morgan Stanley, China now accounts for the majority of manufacturers working on such projects worldwide and controls the supply chain. Some startups are selling robots for as little as 88,000 yuan ($12,178), making them increasingly accessible to businesses.
