China’s Robotics and AI Advances Pose ‘Existential Threat’ to US, Report Warns

China’s growing dominance in robotics and artificial intelligence (AI) presents an “existential threat” to the United States, according to a report by US-based research firm SemiAnalysis.

The report highlights China’s rapid advancements in automation, which could lead to a significant expansion in production capacity across industries. It warns that China is currently the only country positioned to achieve a high level of automation, with its manufacturers capturing nearly 50% of the global robotics market, up from 30% in 2020.

Chinese robotics firms are increasingly competing with Western companies in both low-end and high-end market segments. The rise of Hangzhou-based Unitree Robotics exemplifies this shift. The company’s G1 humanoid robot is described as “the only viable humanoid robot on the market” and is entirely independent of American components.

The report cautions that if China achieves full-scale automation without the US keeping pace, it could severely impact the American economy. The expansion of intelligent robotics systems would allow China to enhance production capacities across multiple industries, further strengthening its manufacturing dominance.

Manufacturing plays a crucial role in robotics, as the field requires continuous refinement and mass production to create cost-effective and scalable products. The report predicts that robotics systems will eventually manufacture more robotics systems, driving down costs and improving quality with each unit produced.

Currently, building a robotic arm similar to Danish firm Universal Robots’ UR5e in the US is about twice as expensive as producing one in China. The World Robotics 2024 report, published in November, found that China had 470 robots per 10,000 employees in 2023, up from 402 in 2022. The country now ranks third globally in robot-to-worker ratio, behind South Korea and Singapore.

AI is also playing a key role in advancing robotics capabilities. In January, Unitree showcased its humanoid robots performing a fully AI-driven dance routine at China’s Spring Festival Gala, which was watched by over 1 billion viewers. The company described it as the world’s first large-scale, fully automated humanoid robot performance.

Shanghai-based start-up Agibot, founded by former Huawei Technologies engineer Peng Zhihui, recently launched an AI model designed to enable humanoid robots to understand and perform real-world tasks. The Genie Operator-1 model allows robots to process natural language instructions and perform reasoning, rather than relying solely on preprogrammed routines.

China is already a major player in the global robotics industry. A Morgan Stanley report last month found that 56% of the world’s publicly traded companies involved in humanoid robotics development are based in China. The country is also home to 45% of the world’s robotics integrators, which customise robots for specific industrial applications.

Shenzhen-based UBTech Robotics expects to deliver 500 to 1,000 units of its Walker S Series industrial humanoid robots this year to customers, including car manufacturers and Apple supplier Foxconn Technology Group. UBTech’s chief brand officer, Michael Tam, emphasised the company’s focus on AI investment to enhance humanoid robot capabilities.

Investment in China’s humanoid robotics sector is also surging. In the first two months of this year, nearly 2 billion yuan (USD 276 million) in venture capital funding was raised across 20 deals, up from 1.2 billion yuan in four transactions during the same period in 2023, according to market tracker ITJuzi.

China’s robotics market share has grown to nearly 50%, up from 30% in 2020.
Unitree Robotics’ G1 humanoid robot is fully independent of US components.
AI-driven automation could significantly expand China’s production capacity.

Source: SCMP