The Humanoid Arms Race Series: Part 1

Following last week's editorial overview, we now begin our in-depth journey into the global humanoid arms race. This opening chapter zeroes in on China—the epicentre of a rapid and state-backed acceleration in humanoid robotics.

From Unitree’s televised robot spectacle to Agibot’s AI-powered breakthroughs, we explore how China’s manufacturing scale, technological self-sufficiency, and coordinated investment strategy have vaulted the nation to the frontlines of the AI-driven transformation of industry, labour, and geopolitics.

China's Strategic Ascendancy in Robotics and AI

China's industrial advancements in humanoid robotics stand at the forefront of a technological revolution that is reshaping global manufacturing paradigms. As 2025 unfolds, the nation's extraordinary progress in robotic production capabilities, manufacturing infrastructure, and industrial automation represents the vanguard of what experts increasingly recognize as the "Humanoid Arms Race."

The remarkable industrial metrics tell a compelling story: China's industrial robot output surged 27% year-on-year in early 2025, while service robot production leaped an impressive 36% to 1.5 million units. This manufacturing prowess, coupled with strategic state-backed investments and technological self-sufficiency initiatives, has positioned China as the undisputed leader in humanoid robotics production at scale.

The Humanoid Arms Race Part 1, delves into China's transformative approach, underscored by remarkable advancements from companies such as Unitree Robotics and Agibot. We examine how strategic state-backed investments, aggressive commercialization strategies, and technological breakthroughs have positioned China to potentially reshape global economic and technological hierarchies, profoundly influencing the geopolitical dynamics of the AI century.

China's Leap Into Robotics and AI

The year 2025 marks a watershed moment for humanoid robotics, comparable to the iPhone's debut for smartphones or ChatGPT's launch for artificial intelligence. This year has seen the mass production of humanoid robots transition from ambitious concept to market reality, with China emerging as the undisputed frontrunner in this technological revolution.

China's ascendance in the humanoid robotics sector represents a culmination of strategic investments, manufacturing prowess, and technological innovation. According to data from the first two months of 2025, China's industrial robot output surged 27% year-on-year to 91,088 units, while service robot production jumped an impressive 36% to 1.5 million units. These statistics underscore the nation's commitment to automation at an unprecedented scale.

China's Leap Into Robotics and AI

The year 2025 marks a watershed moment for humanoid robotics, comparable to the iPhone's debut for smartphones or ChatGPT's launch for artificial intelligence. This year has seen the mass production of humanoid robots transition from ambitious concept to market reality, with China emerging as the undisputed frontrunner in this technological revolution. Whilst industrial robotics have been assigned to automate manufacturing and processes and autonomous machinery including vehicles have been  jumping on the world stage in past 5 years,  it is the consolidation launch of AI driven humanoid manufacturing in mass with young highly capitalised start up making a new mark in industrial revolution , similar to mass proliferation of the internet launch and at the beginning of the century.

Mass Production of Humanoid Robots is Closer Than Ever with Chinese Startups Fourier Intelligence and UBTech Robotics 

Fourier Intelligence and UBTech Robotics are two of China’s leading startups driving innovation, commercialization, and global competitiveness in the humanoid robot industry. Mass production of humanoid robots is closer than ever. The rise of large artificial intelligence models is reshaping the landscape for Chinese humanoid robots, pulling them out of labs and making mass production the industry's new focal point.

Fourier Intelligence , initially known for rehabilitation robots, pivoted toward general-purpose humanoids with the 2023 launch of its GR-1 robot, delivering over 100 units across multiple sectors. CEO Gu Jie attributes Fourier’s rapid progress not only to AI advancements but also to China’s robust automotive and electronics manufacturing ecosystems, crucial for scaling production.

Fourier acknowledges the GR-1 as an ongoing development, continuously improving motor intelligence, cognitive abilities, dexterity, and user experience based on user feedback.

In 2025, Fourier introduced the GR-2, featuring 53 degrees of freedom, significantly enhanced battery life, and greater lifting capacity—making it more practical for widespread industrial application. Fourier also launched the N1, its first open-source humanoid robot, aiming to accelerate global innovation and adoption through shared knowledge.

UBTech Robotics: Industrial Integration Leader

Shenzhen-based UBTech Robotics, China’s largest humanoid robot manufacturer, is strategically deploying robots within industrial giants such as Apple supplier Foxconn. UBTech’s Walker S1 robots, launched in late 2024, have undergone extensive training for logistics and delicate manufacturing operations, notably within electronics and automotive production environments.

In January this year, UBTech announced a comprehensive partnership with Foxconn, extending robot deployments significantly. This strategic integration showcases UBTech’s commitment to expanding humanoid applications across complex industrial processes. UBTech has also become the first publicly listed humanoid robot company, facilitating further investment and international market penetration.

What sets UBTech apart in the market is its systematic approach to industrial skills development. According to Chief Brand Officer Michael Tam, the company is methodically training its robots to handle the complex and delicate production tasks required in modern manufacturing. "For car manufacturing, there are thousands of tasks on our list," Tam notes. "In areas like 3C production [computers, communication, and consumer electronics], these are totally new skills for humanoid robots to learn."

By the end of 2024, UBTech had achieved the highest number of deployed humanoid robots for training in automotive factories worldwide, demonstrating its leadership in practical industrial applications. 

China's ascendance in the humanoid robotics sector represents a culmination of strategic investments, manufacturing prowess, and technological innovation. According to data from the first two months of 2025, China's industrial robot output surged 27% year-on-year to 91,088 units, while service robot production jumped an impressive 36% to 1.5 million units. These statistics underscore the nation's commitment to automation at an unprecedented scale.

Why Are Newcomers Unitree and AgiBot Getting So Much Attention? Are They Bringing Something Different?

Unitree and AgiBot are attracting global attention because they are redefining the pace and ambition of the humanoid robot industry. Unlike older, more established companies, these startups combine rapid mass production with breakthrough advances in dexterity, AI, and real-world adaptability.

AgiBot’s robots, with their highly dexterous hands and proprietary AI models, can quickly learn complex tasks from human demonstrations, while Unitree’s affordable, agile robots are designed for both industrial and public-facing applications.

Their focus on data-driven development, open-source compatibility, and public engagement-such as large-scale live performances-signals a new era where humanoid robots are not just laboratory curiosities but are poised for widespread, practical deployment in factories, logistics, and daily life

A striking example came during the 2025 Spring Festival Gala—China's most-watched broadcast—where Hangzhou-based Unitree Robotics showcased 16 general-purpose robots in a perfectly synchronized performance. Watch the full moment as Unitree’s robots demonstrate China’s accelerating progress in humanoid AI:

As Unitree proudly declared, it was the world's "first large-scale, fully AI-driven and fully automated cluster humanoid robot performance in history—a perfect collision of technology and traditional culture."

Dr. Wei Xiaoyong, robotics expert at Sichuan University, notes that 

"Unitree's public demonstration represented a strategic declaration of China's capabilities in the humanoid sector. The technical complexity of coordinating multiple bipedal robots in synchronized movement demonstrates mastery of both hardware and software integration."

What makes Unitree particularly significant in the global robotics landscape is its technological independence. According to a recent report by US-based research firm SemiAnalysis, Unitree produces 

"the only viable humanoid robot on the market," with its flagship G1 robot "entirely decoupled from American components."

This achievement aligns perfectly with China's national strategy of technological self-sufficiency, especially in critical emerging technologies.

The company's founder, Wang Xingxing, has strategically expanded operations beyond Hangzhou, establishing new entities in Shenzhen, Beijing, and Shanghai. The Shenzhen expansion, formalized in March 2025 with the registration of Shenzhen Tianyi Technology, positions Unitree to leverage the manufacturing ecosystem of China's hardware capital. Wang's pragmatic approach is evident in his assessment: "Both locations have their own advantages, and we can collaborate."

Perhaps most remarkably, Unitree has maintained profitability since 2020, a rare achievement in the capital-intensive robotics sector where most competitors continue to operate at a loss while pursuing scale.

Agibot’s Financial Backing and China’s Expanding Robotics Ecosystem

Equally ambitious is Shanghai-based Agibot, also known as Zhiyuan Robotics. Co-founded by Peng Zhihui, a former recruit from Huawei's prestigious "Genius Youth" program, Agibot exemplifies how China's talent pipeline is fueling innovation in emerging technologies. The company has set an aggressive production target of 3,000 to 5,000 robots for 2025—a dramatic increase from fewer than 1,000 units shipped in 2024.

Yao Maoqing, a partner at Agibot and president of the company's embodied intelligence unit, explains their strategic focus: 

"This year, we aim to deploy new products in industrial scenarios, replacing humans in specific tasks to create tangible customer value." 

This pragmatic approach prioritizes commercial applications over consumer adoption, which Yao estimates will take "around five more years."

Agibot's technological breakthrough came in early 2025 with the launch of its Genie Operator-1 AI model, specifically designed to serve as a "general-purpose brain" for humanoid robots. This innovation enables robots to "understand instructions in natural language and perform reasoning, rather than being limited to preprogrammed routines," according to company statements.

Watch the video below to see how Agibot’s embodied AI is transforming general-purpose robotics in action.

The financial ecosystem supporting China's robotics revolution is equally impressive. Agibot has attracted investment from tech giant Tencent, automotive leaders BYD and BAIC, and numerous venture capital firms. Currently valued at over 10 billion yuan (approximately $1.38 billion), the company boasts 

"strong cash reserves ensuring operational expenses for at least three years," according to Yao.

Strategic Policy Meets Entrepreneurial Innovation

China's dominance extends beyond individual companies to the broader robotics ecosystem. Morgan Stanley research identifies China as home to 56% of the world's 100 publicly-traded companies involved in humanoid development and 45% of global integrators—enterprises that customize robots for specific end-user applications.

The nation's robot density—a key metric of automation adoption—has reached 470 robots per 10,000 employees in 2023, up from 402 in 2022. This places China third globally in the ratio of robots to factory workers, trailing only South Korea and Singapore.

Government support has been instrumental in this rapid advancement. In early 2025, China approved a state-backed venture capital fund of $138 billion focused on robotics, AI, and other cutting-edge innovations. In his annual work report, Premier Li Qiang explicitly stated that China would prioritize developing intelligent robots alongside connected electric vehicles, signaling the sector's strategic importance to national economic and technological objectives.

Professor Zhang Wei of the Chinese Academy of Sciences observes that

"China's approach combines top-down policy direction with bottom-up entrepreneurial energy. The state provides strategic guidance and financial support, while companies like Unitree and Agibot drive practical innovation and commercialization."

As 2025 unfolds, China's leap into humanoid robotics continues to accelerate, with manufacturing capabilities, technological innovation, and strategic investment converging to establish the nation as the epicenter of the global humanoid revolution.

As China solidifies its lead in scaling humanoid robotics, attention turns to the broader global contest now underway. In Part 2, we shift focus to the United States, where Elon Musk’s Optimus project and a wave of American innovation signal a different kind of arms race—one defined by vision, venture capital, and technological moonshots. The battle lines are drawn: scale versus ambition, control versus creativity. The race is far from over.

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