MagicLab, a Chinese humanoid startup, has recently begun deploying robot prototypes in production lines for tasks such as quality inspection, material handling, and assembly. CEO Wu Changzheng stated that "These breakthroughs lay the foundation for our focus in 2025 on real-world applications," noting that the company has integrated its robots with AI models like DeepSeek, Alibaba's Qwen, and ByteDance's Doubao.
The integration with DeepSeek has been particularly valuable for enhancing the robots' cognitive abilities. "DeepSeek has been helpful in task reasoning and comprehension, contributing to the development of our robots' 'brains,'" Wu explained. This represents a significant advancement as China's AI capabilities are allowing humanoid developers to pair impressive hardware with sophisticated software, transforming these machines from mere demonstrations to economically valuable workers.
China's dominance in hardware manufacturing gives it a clear advantage in the humanoid robot sector. The country can produce up to 90% of humanoid components, significantly lowering barriers to entry. As a result, China now accounts for the majority of manufacturers working on such projects globally and dominates the supply chain, according to Morgan Stanley.
This push toward humanoid robotics reflects China's broader goal of addressing labor shortages—projected to reach nearly 30 million manufacturing workers by 2025—caused by an aging population and younger generations increasingly avoiding factory jobs. The Chinese government is playing a pivotal role in this transformation, allocating more than $20 billion to the sector over the past year and establishing a one-trillion-yuan ($137 billion) fund to support AI and robotics startups. State procurement of humanoid robots and related technologies surged to 214 million yuan in 2024, up from just 4.7 million yuan in 2023.
In 2023, China's Ministry of Industry and Information Technology outlined a plan to mass-produce humanoid robots by 2025, with the goal of establishing them as a key driver of economic growth by 2027. This vision is now coming to fruition, fueled by significant government support and breakthroughs in AI technology. Chinese President Xi Jinping's recent inspection of AgiBot's facilities in Shanghai underscores the strategic importance of this sector to Beijing. Unlike traditional industrial robots, which are often large, stationary arms designed for repetitive tasks, humanoid robots are versatile and mobile, capable of navigating complex environments and performing a wide range of functions.
Beyond manufacturing, Beijing sees this technology as key to addressing labor shortages in areas such as elderly care, where demand is increasing as China's 1.4 billion population ages. China's government published a national elderly-care plan in December that encouraged integration of humanoid robots and AI. Soon after, tech giant Ant Group announced the creation of new subsidiary Ant Lingbo Technology, whose humanoid robots will focus on elderly care, among other areas. "The robots in five or 10 years could organise a resident's room, pick up a package or even transfer people from a bed to a washroom," said AgiBot's partner Yao Maoqing.