Will China's Costly Dance With Humanoid Robots Pay Off in Time to Come?

China is riding a wave of enthusiasm for humanoid robots that shows no sign of abating despite questions about the commercial viability of the pricey droids — fun to look at as they may be.

- Joyce ZK Lim

SHENZHEN —

The sector continues to draw in companies and investors keen to hitch their wagons to the emerging tech, which has fast become emblematic of China's quest for global leadership in science and innovation.

On May 28, smartphone maker Honor became the latest tech company to enter the crowded humanoid robot space, joining the likes of electronics giant Xiaomi and electric vehicle maker Xpeng in what some say could become a multi-trillion-dollar industry.

Capital, too, has poured into the sector. Humanoid-related investments so far in 2025 have surpassed funding received for the whole of 2024.

"Humanoid robots are the development trend of the robotics industry," said Mr Deng Shaorong, regional director at Guangzhou Inbot Technology, a maker of commercial service robots which is expanding into humanoids.

"But at this stage, one of the biggest problems that they face is in real-world applications," he said. "Ultimately, investors are interested not just in the next hot concept, but in whether the robots can really be put to use, reducing costs and increasing efficiency."

Robotics driven by artificial intelligence, also called "embodied AI," is a national priority for China. It was written into the government's annual work plan for the first time in 2025, and the authorities are sparing no expense to make sure the sector gets the funds it needs.

Officials announced in March a one trillion yuan (S$179 billion) venture capital fund aimed at mobilizing support for robotics and other high-tech industries. Local governments, including in tech powerhouses Beijing, Shanghai and Shenzhen, have also set up investment funds for robotics and AI to the tune of billions of yuan.

At a study session involving China's top leaders in late April, President Xi Jinping spoke of providing support in financing, tax incentives and government procurement to strengthen the development of AI in China.