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China Scales Up AI Humanoid Robot Training with Massive State Support

Chinese startups are operating hundreds of robots in Shanghai warehouses to train AI systems, backed by over $20 billion in subsidies and a planned 1 trillion yuan innovation fund.

A humanoid robot walks as employees conduct tests on the robots, on the production line at the AgiBot factory in Shanghai, China March 20, 2025. REUTERS/Florence Lo
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Overview

  • AgiBot, a Chinese robotics startup, is running over 100 humanoid robots 17 hours daily in Shanghai to collect data and improve AI autonomy.
  • The Chinese government has allocated $20 billion in subsidies to the humanoid robot sector and is creating a 1 trillion yuan fund to boost AI and robotics innovation.
  • China's dominance in humanoid robot components, producing up to 90% domestically, is driving down production costs, projected to reach $17,000 per unit by 2030.
  • AI breakthroughs by companies like DeepSeek are enabling robots to transition from demonstrations to economically valuable tasks in manufacturing and logistics.
  • Policymakers are debating social protections, including AI-specific unemployment insurance, as robots threaten to displace millions of manufacturing workers in China.