An engineer debugs robots at the factory of AgiBot, a leading robotics company specializing in embodied intelligence, on December 8, 2025 in Shanghai, China. (Photo by Tang Yanjun/China News Service/VCG via Getty Images) Tang Yanjun | China News Service | China News Service | Getty Images
Billionaire Elon Musk has put humanoid robots in the spotlight this year, positioning them as central to Tesla 's valuation, which he thinks could hit tens of trillions of dollars. But Tesla is yet to sell its flagship humanoid robot Optimus. Instead, it's likely a slew of Chinese companies that will beat Tesla to the punch and begin ramping up production of robots in 2026, as Beijing puts the technology at the center of its strategic plans. "China currently leads the United States in the early commercialization of humanoid robots," Andreas Brauchle, partner at consultancy Horváth, told CNBC by email. "While both countries are expected to build similarly large markets over time, China is scaling more rapidly in this initial phase." Humanoid robots are designed to be shaped and move like a human. Artificial intelligence algorithms power their abilities along with complex hardware like semiconductors. Proponents say they could be used across various settings, from factories to hospitality and even in the home.
Beijing makes robots a key priority
Over the past few years, China has made robotics a key focus of its tech strategy, unveiling plans to create supply chains and mass production of the machines. Chinese President Xi Jinping and the country's top leaders, known as the Central Committee, met in October and released proposals for the "15th five-year plan," a document that lays out some of the key focus areas for Beijing in the coming years. "Embodied artificial intelligence," a term that refers to AI-driven hardware like robotics or driverless cars, was mentioned in the text. For China, humanoid robots represent an opportunity to address labor challenges in the world's second-largest economy as well as advancing Beijing's quest for tech supremacy. "China's push into humanoid robotics development is driven by a combination of addressing demographic pressures, driving the next horizon of economic growth, and strengthening its role in global competition," Karel Eloot, senior partner at McKinsey & Company, told CNBC.
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China's birth rates are declining and the population is aging, leading to a reduced number of people in the workforce and rising labor costs. Robots are seen as a way to address this. Meanwhile, China is locked in an ongoing tech race with the U.S. across multiple sectors. Robotics, seen as a real-world application of AI, could become a new battleground in 2026. Politico reported this month that Commerce Secretary Howard Lutnick has been meeting with the CEOs of robotics companies to form a plan to accelerate the industry. Washington is considering issuing an executive order on robotics next year, Politico reported, citing people familiar with the matter.
China's key robotics companies
"China could be the most important market for humanoids," RBC Capital Markets said in a note this month. Analysts at the bank forecast a global total addressable market for humanoids of $9 trillion by 2050, with China accounting for more than 60% of that. Chinese robotics firms are attempting to power ahead with mass production. Unitree, which is gearing up for an initial public offering that could value it at around $7 billion, is one of China's buzziest robotics players. The company has various robotics models, including humanoids. This year, it debuted its latest model, the H2, showcasing its ability to dance.
Unitree robot performs for visitors at China Summit in pavilion 1 during Web Summit first day of this year's event on November 11, 2025 in Lisbon, Portugal. Horacio Villalobos | Getty Images News | Getty Images
UBTech Robotics is another of China's key players. It makes humanoid robots for both an industrial setting, like a factory, as well as commercial applications, like being a tour guide. UBTech's flagship industrial model, the Walker S2, is able to swap out its battery itself in order to run 24 hours a day. The company is listed on the Hong Kong stock exchange and this month carried out a share placement to raise around $400 million to fund its expansion. UBTech plans to deliver 500 industrial robots this year and ramp up production of its humanoid robots to 5,000 in 2026 and 10,000 in 2027, the South China Morning Post reported in November. AgiBot is another player that said this month its 5,000th humanoid robot rolled off the production line.
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