China leads humanoid robot race as Japan pivots to AI

China has emerged as a dominant leader in the humanoid robot industry, with reports indicating that 97% of humanoid robot shipments are Chinese-made. In cities like Shanghai, robots are already integrated into daily life, with commercial models used for customer service and affordable home models available for families.

Experts note that China’s rapid advancement is driven by a strategy of rapid implementation and iterative improvement through failure, supported by strong government policy and funding. This contrasts with Japan’s historical dominance in robotics, seen in past successes like ASIMO and Pepper, where the focus was often on specialized or niche applications.

In response, Japanese companies and the government are seeking a new competitive edge. While China leads in physical movement and mass production, Japanese ventures are focusing on the “brain” of the robot—advanced AI and decision-making capabilities. Companies like Kawasaki Heavy Industries are prioritizing durability and practical utility in medical and disaster relief settings. Additionally, the Japanese government has announced plans to invest 10.5 trillion yen into “physical AI” by fiscal year 2040 to regain global competitiveness.