China’s humanoid robots grabbed global attention with kung fu flips at the nation’s televised Spring Festival Gala, while Chinese phone maker Honor is set to unveil its first humanoid robot at MWC in Spain. 

Robotics was flagged as a priority under the country’s “Made in China 2025” plan, albeit originally focused on factory automation, rather than humanoids. Now, rapid advances in multimodal AI are accelerating so-called embodied AI — autonomous machines operating in the real world — a push officials say could help offset labor shortages and drive productivity gains. 

At this early stage of humanoid robot development, Chinese companies are outpacing their U.S. rivals in both speed and volume, Selina Xu, a China and AI policy lead at the office of Eric Schmidt said.

“China has a more robust hardware supply chain — much of it built up through the EV sector, from sensors to batteries — and the world’s strongest manufacturing base, allowing companies to iterate far faster than Western competitors,” Xu told TechCrunch. 

As a result, not only are Chinese robots cheaper but companies can also release new models more quickly, Xu noted, adding that leading Chinese player Unitree shipped roughly 36 times more units last year than U.S. rivals Figure and Tesla.  

Global humanoid robot shipments totaled just 13,317 units last year, according to a Forbes report released last month. That is a tiny base for an industry expected to nearly double annually and reach 2.6 million units by 2035. (Still, the figures should be viewed with caution. The report notes it remains unclear how many units represent commercial sales versus demo models or pilot deployments, underscoring the early-stage nature of the industry.) 

The top humanoid robot makers by 2025 shipments were led by China’s Agibot and Unitree, followed by UBTech, Leju Robotics, Engine AI, and Fourier Intelligence, underscoring Beijing’s early dominance in the sector.  

The biggest shift recently has been from “demo-driven excitement” to “operations-driven adoption,” Yuli Zhao, chief strategy officer at Galbot, told TechCrunch. Galbot’s humanoid robot, the G1, appeared at this year’s Spring Festival Gala, China’s annual, state-run lunar New Year’s Eve television show, alongside robots from Unitree Robotics, Noetix, and MagicLab. 

“More customers are asking: Can the robot run stably in real environments and actually take work off people’s plates? That practical pull is strengthened in China because policy and industrial strategy encourage automation upgrades, and the manufacturing ecosystem makes iteration extremely fast,” Zhao said.

While increased funding toward humanoid startups “has definitely accelerated” the pace of progress, “the most durable adoption comes when you can show reliable and repeatable value in production or service operations, not just a one-off showcase,” Zhao added.

Still, investing helps and Chinese robotics makers are securing it. Last year Unitree was valued at around $3 billion after closing its Series C, with ambitions to reach as much as $7 billion in a future IPO. Meanwhile, Galbot has raised more than $300 million in fresh funding, reportedly pushing its valuation to $3 billion, one of the largest financings in China’s humanoid robotics sector to date. 

U.S. companies are moving beyond flashy demos as well to focus on real-world deployments. Plus, they are pursuing their own aggressive goals. U.S. startup Foundation, for instance, plans to build 50,000 humanoid robots by the end of 2027. 

But China is already targeting a mix of affordable mass-market models and high-end applications, rapidly expanding humanoids across industrial, consumer, and rehabilitation sectors, according to a December TrendForce report.

Bottlenecks to China’s dominance

When it comes to AI systems and integrated software, it’s still unclear where Chinese humanoid firms truly stand. The industry is largely betting on vision-language-action models and “world models,” but both technologies remain in early stages. Nvidia currently leads the space with its end-to-end humanoid software stack, according to Xu, so naturally most humanoid startups in China are powered by Nvidia’s Orin chips. However, domestic chipmakers are developing homegrown alternatives, she said. 

Yet humanoid robotics makers are still working on fundamental problems. The challenge is enabling robot foundation models to predict the “next physical state” the robot will face in unpredictable environments, like how large language models predict the next word. But unlike LLMs, humanoid robotics companies can’t simply scrape the internet for training data, Xu said. So most are relying on simulation environments, which generates synthetic data, though real-world data collection remains essential. 

“Because of the data scarcity problem, humanoids are still far away from autonomy. The hardware is currently ahead of the software — the robot body can handle a lot more dexterity today than years ago (though it has reliability issues, as we saw with the robots that broke down at humanoid marathons), but the brain is still nascent,” the analyst said. 

Safety is a major hurdle for humanoid robots, too. One high-profile accident could trigger public backlash, and China is likely weighing how to roll out the technology quickly without moving too fast. As the industry matures, more regulations are expected.

Given the lack of data, Zhao believes that demand for humanoids will grow first in fairly contained workplaces.

“Early momentum is likely to be in industrial manufacturing, warehouse logistics, and retail, where tasks are repetitive, hours are long, and processes are clear — creating real demand and ideal conditions for humanoid robots to deliver value at scale,” he said. 

Other APAC players 

Humanoid robot development is not a two-country race. Japan’s robotics ecosystem — from startups to semiconductor heavyweights — is targeting humanoid mass production by 2027. Long a pioneer through projects like Honda’s Asimo, Murata Manufacturing’s Murata Boy, and SoftBank Robotics’ Pepper, Japan leans on precision and advanced control. One area unique to this nation: Humanoid robots are increasingly used in eldercare.  

Coral Capital CEO James Riney, who invests in tech companies in Japan, believes Tokyo will continue to thrive in the humanoid robotics industry. “There are three factors likely to drive the adoption of robotics in Japan. One is the labor shortage and the desire to depend less on mass immigration. The second is the widespread cultural view of robots as our friends — more Doraemon vs. Terminator. The third is that Japan is already dominant in many parts of the robotics supply chain.”

Hyundai Motor’s Boston Dynamics unit introduced a new Atlas humanoid for factory use by 2028, with plans to produce up to 30,000 units annually in the U.S. as part of its AI-driven robotics push.  

Still, for China, government policy, industrial strategy, labor shortages, and private capital are all converging to turbocharge the country’s humanoid robotics push. 

 “China’s leadership is best understood as a speed-to-scale advantage,” Zhao said. “The ecosystem here compresses the entire cycle — R&D, supply chain, manufacturing, integration, and customer deployment — into a very tight loop. That means humanoid companies can move from prototype to real-world deployment faster, learn from real operations, and iterate at a pace that’s difficult to match elsewhere.” 

Xiaomi today launched a slew of gadgets ahead of the Mobile World Congress (MWC) in Barcelona including a camera-focused flagship smartphone, an AirTag clone, Xiaomi Watch 5 smartwatch, and an ultra slim power bank.

The China-based company has partnered with camera maker Leica to co-brand its Xiaomi 17 Ultra smartphone. As part of the partnership, it is using Leica lenses and creating filters in the style of the German camera company.

The phone has a 50-megapixel main sensor with an F/1.67 aperture and a 1-inch sensor. But the main attraction is the 200-megapixel telephoto camera that has a variable focal length of 75mm-100mm equivalent. That means you can zoom optically between 3.2x and 4.3x. The phone also has a 50 MP ultrawide camera with an f/2.2 aperture.

Also notable: The phone packs a 6,000 mAh battery (the Chinese version comes with a bigger 6,800mAh battery). The phone could be charged using a 90W USB PD-PPS, and it supports Xiaomi’s Hypercharge wireless tech at 50W.

The device has a 6.9-inch Xiaomi HyperRGB OLED display protected by Xiaomi’s own Shield Glass 3.0. The company has picked Qualcomm’s latest Snapdragon 8 Elite Gen 5 processor, which was also used in the recently launched Galaxy S26 series.

The company is also releasing a special Leica edition phone to celebrate 100 years of the camera company. The device has a durable aluminum-alloy body with a nickel-anodized finish. Xiaomi has also added a Leica theme on the software side.

The device has a rotating ring that mimics zoom on a physical camera. The special edition also has a “Leica Essential mode,” which has filters that recreate photos in the style of Leica M9 and Leica M3.

Xiaomi launched the Xiaomi 17 with a larger 6,330 mAh battery, which can be charged at 100W using the company’s HyperCharge tech.

The company is also launching two photography add-ons for the Xiaomi 17 Ultra. The 17 Ultra Photography Kit is a Bluetooth-connected snap-on that has a two-stage shutter button and a video recording button.The Xiaomi 17 Ultra Photography Kit Pro aims to mimic a physical camera with a leather finish, a video recording button, a detachable shutter button, and zoom control. This kit snaps on using a USB-C connection and also has a 2,000 mAh battery for its operation. Using this add-on, users can also use a new fastshot mode on the phone.

Through this launch, the company is making these devices available in the EU and the UK. The Xiaomi 17 starts at €999, and the Xiaomi 17 Ultra starts at €1,499. The Leica edition comes with 16GB RAM and 1TB storage, and is priced at €1,999. The Xiaomi 17 Ultra Photography Kit is priced at €99.99, and the Xiaomi 17 Ultra Photography Kit Pro is priced at €199.99.

Apart from phones, the company also launched a bunch of other devices, including a scooter. Xiaomi said that its Electric Scooter 6 Ultra has 1200W peak power and 75km of range. The scooter has 12-inch all-terrain tires with front and rear disc brakes. It has a three-inch TFT display to measure things like speed and range. The scooter starts at €329.99 with five different versions, with the top version priced at €799.99.

The company also launched a new Xiaomi tag, an AirTag-like device, which works with both Apple Find My and Google Android Find Hub. The tag weighs just 10 grams and has a button cell battery that lasts over a year. You can also play a sound remotely to find the tag or the time at which the tag is attached. The company is pricing this tag at €14.9 for one and €49.99 for a pack of four.

What’s more, the company released a slim power bank with just 6mm of thickness. The powerbank weighs 98 grams and has a 5,000 mAh battery capacity. It can charge devices at 22.5W through a wired connection and at 15W through a wireless connection. The powerbank is magnetic, so it can stick to supporting phones like iPhones, and charge them wirelessly. The powerbank is priced at €59.99 for black and silver colorways. It also has an orange colorway priced at €64.99.

Xiaomi launched its new smartphone, Xiaomi Watch 5, with a 930mAh battery that could last up to six days. The smartwatch has a round 1.54-inch AMOLED display and supports gestures to dismiss calls or alarms. The watch can also prepare a health report in 60 seconds by using metrics like heart rate, blood oxygen, stress levels, sleep duration, sleep heart rate, and sleep SpO₂. The watch is priced at €299.99.

The company also launched a €69.9 Redmi Buds 8 Pro earbuds with active noise cancellation and up to 33 hours of battery life.

OpenAI CEO Sam Altman announced late on Friday that his company has reached an agreement allowing the Department of Defense to use its AI models in the department’s classified network.

This follows a high-profile standoff between the department — also known under the Trump administration as the Department of War — and OpenAI’s rival Anthropic. The Pentagon pushed AI companies, including Anthropic, to allow their models be used “all lawful purposes,” while Anthropic sought to draw a red line around mass domestic surveillance and fully autonomous weapons.

In a lengthy statement released Thursday, Anthropic CEO Dario Amodei said the company “never raised objections to particular military operations nor attempted to limit use of our technology in an ad hoc manner,” but he argued that “in a narrow set of cases, we believe AI can undermine, rather than defend, democratic values.”

More than 60 OpenAI employees and 300 Google employees signed an open letter this week asking their employers to support Anthropic’s position.

After Anthropic and the Pentagon failed to reach an agreement, President Donald Trump criticized the “Leftwing nut jobs at Anthropic” in a social media post that also directed federal agencies to stop using the company’s products after a six-month phase out period.

In a separate post, Secretary of Defense Pete Hegseth claimed Anthropic was trying to “seize veto power over the operational decisions of the United States military.” Hegseth also said he is designating Anthropic as a supply-chain risk: “Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic.”

On Friday, Anthropic said it had “not yet received direct communication from the Department of War or the White House on the status of our negotiations,” but insisted it would “challenge any supply chain risk designation in court.”

Surprisingly, Altman claimed in a post on X that OpenAI’s new defense contract includes protections addressing the same issues that became a flashpoint for Anthropic.

“Two of our most important safety principles are prohibitions on domestic mass surveillance and human responsibility for the use of force, including for autonomous weapon systems,” Altman said. “The DoW agrees with these principles, reflects them in law and policy, and we put them into our agreement.”

Altman said OpenAI “will build technical safeguards to ensure our models behave as they should, which the DoW also wanted,” and it will deploy engineers with the Pentagon “to help with our models and to ensure their safety.”

“We are asking the DoW to offer these same terms to all AI companies, which in our opinion we think everyone should be willing to accept,” Altman added. “We have expressed our strong desire to see things de-escalate away from legal and governmental actions and towards reasonable agreements.”

Fortune’s Sharon Goldman reports that Altman told OpenAI employees at an all-hands meeting that the government will allow the company to build its own “safety stack” to prevent misuse, and that “if the model refuses to do a task, then the government would not force OpenAI to make it do that task.”

Altman’s post came shortly before news broke that the U.S. and Israeli governments have begun bombing Iran, with Trump calling for the overthrow of the Iranian government.