China's humanoid robots take the lead

China is leading global humanoid robot shipments driven by its strong manufacturing chain and electric-vehicle ecosystem, an industry investor said, and the smarter response is to build specialized applications on top of Chinese hardware rather than replicate it.

Global humanoid robot shipments reached about 19,100 units in the first half of 2026, up from 5,100 a year earlier. Chinese vendors accounted for more than 97 percent of global shipments during the period, according to a report by US-based market research firm Smart Analytics Global.

Shanghai-based AgiBot shipped about 8,400 units, accounting for 44 percent of the global total, while Hangzhou-based Unitree Robotics shipped about 5,900 units, or 31 percent, the firm said.

Other research firms have also placed Chinese companies at the top of the global humanoid robot market by volume, although their estimates use different measures. International Data Corporation estimated that about 18,000 humanoid robots were shipped worldwide in 2025, with AgiBot and Unitree each shipping approximately 5,000 units. Counterpoint Research estimated about 16,000 installations in 2025 and said China accounted for more than 80 percent of the total.

Andrew Young, vice-chairman and managing partner of IPG Capital, said China's lead is built on a manufacturing ecosystem that allows companies to develop products quickly and drive down costs as production scales.

"China has a very strong supply chain. It is the same in the auto industry: as long as you have a strong supply chain, you can bring products to market, and then it becomes very difficult for others to compete with you," he said.

Young, based in Hong Kong and specializing in green technology and robotics, spoke with China Daily during a visit to Silicon Valley.

China also benefits from a large pool of engineers, a complete manufacturing supply chain, software capabilities and rapidly developing artificial intelligence, he said.

"Once you achieve scale, costs can fall even further," Young said. "China has a relatively high level of engineering and strong software capabilities. AI, in particular, is developing very quickly. China has a large talent pipeline in AI, as well as strong energy and infrastructure support."

His opinion echoes findings in an April report by consulting firm McKinsey & Company.

How that supply chain matures will help determine the pace and economics of humanoid robot deployment over the next decade, says the report examining the humanoid robot supply chain.

Many components used in humanoid robots overlap structurally with the electric-vehicle value chain, giving China an advantage because of its strong EV ecosystem and its significant manufacturing capacity in several critical components.

China accounts for 90 percent of global capacity for permanent magnets used in motors, according to the McKinsey report. It also holds 40 percent of global capacity in precision bearings, 35 percent in motors and 30 percent in power electronics.

China's manufacturing base also provides cost advantages through economies of scale, clustering of component suppliers, competition among suppliers and the reuse of mature EV-grade manufacturing ecosystems, the report says.

Those advantages become more difficult for competitors to overcome as production expands, Young said.

"Once you do something well, it becomes very difficult for others to catch up," he said.

As humanoid robot hardware matures, Young said companies and investors outside the robot-manufacturing sector could focus on developing applications that use existing platforms rather than attempting to build competing robots from the ground up.

Smart Analytics Global estimated that more than 70 percent of humanoid robot shipments in the first half of 2026 went to industrial or commercial applications. At the same time, the firm said rapid expansion in hardware continued to outpace improvements in reliability, manipulation, AI and safety, as well as reductions in cost.

Young said his strategy for startups is to take advantage of already advanced robot platforms and concentrate on specialized use cases.

He pointed to a robot developed by Hong Kong researchers that adds an AI-powered dual-arm system to a Unitree four-wheeled and legged robotic platform to pick blueberries.

"Because we can't compete with Unitree, we can focus on application scenarios," Young said.

Another example is San Francisco startup Tau Robotics, which offers an invitation-only home-cleaning service using Unitree humanoid robots at $30 per hour. Tau sources the robot hardware from Unitree while designing the cameras, claws and onboard computer in-house.

However, companies such as Tau Robotics that source hardware from China may face growing regulatory restrictions in the United States.

US regulators have moved to restrict some foreign-produced advanced robotic devices. In July, the Federal Communications Commission added such devices to its Covered List, which the agency describes as a list of communications equipment and services determined to pose an unacceptable risk to US national security under the Secure and Trusted Communications Networks Act of 2019.

The FCC said the category includes mobile robots such as humanoids and quadrupeds. According to the agency's published guidance, covered foreign-produced advanced robotic devices generally cannot receive the equipment authorization required before they can be imported, marketed or sold in the US unless a conditional approval or another applicable authorization is granted.

Young acknowledged that recent US policies targeting China would have an effect on the sector, but said the market would ultimately adjust around demand for products that can perform tasks that alternatives in the local market cannot.

"If we focus on specific application scenarios, we will still have a competitive advantage," he said. "If the local market does not have a product with the same functionality, and customers genuinely need that product, then a market will naturally emerge."

Rather than viewing China's manufacturing strength only as competition, Young said companies could identify areas where mature hardware can be combined with local technologies and applications to create commercial value.

"We believe that technology can often transcend political factors," he said.

"Of course, politics will have an impact, but from an investment and application perspective, we will still look for markets where products can be deployed and create value."