China is going all-in to beat the US on humanoid robots

Subscribe to enjoy similar stories. SUZHOU, China—Elon Musk has been telling investors for months that Tesla’s Optimus humanoid robot will revolutionize the world and create a new mega-industry. But most of it could belong to China, he has warned.

“China is an ass-kicker, next level," Musk said in January. “To the best of our knowledge, we don’t see any significant [humanoid robot] competitors outside of China." China is moving quickly to try to dominate the industry. Humanoid-robotics companies are sprouting up from Shenzhen to Suzhou, with more than 140 and counting.

Tapping a vast ecosystem of parts suppliers and engineering talent, they are starting to produce humanoid robots at scale and actively introducing them into real-life scenarios in factories, hotels and offices. Setting the broader industry direction is Beijing, which has identified “embodied AI"—the fusion of artificial intelligence with physical systems—as a cutting-edge technology area China wants to own in the coming five years. Local governments are showering companies with land and discounted office rent.

Banks are offering favorable loan terms. Since late 2024, Beijing, Shenzhen and other cities have established investment funds totaling more than $26 billion to inject capital into the industry, Morgan Stanley calculates. Government agencies and state-owned companies are also serving as early adopters, buying up humanoids and deploying them in museums, at events and on the street as robocops performing traffic control.