China targets global dominance in robotics and physical AI

China is positioning itself to dominate the advanced robotics and physical AI sectors, potentially mirroring its previous market dominance in electric vehicles and drones. According to data from Smart Analytics Global, China is projected to hold approximately 85% of the global market share for humanoid and robot dog deliveries by 2025.

A report from the Institute for Democracy, Society and Emerging Technologies (DSET) highlights several strategic advantages for Beijing, including a massive domestic market, comprehensive manufacturing ecosystems, abundant real-world data, and strong battery production capabilities. The country also controls the supply of essential materials, such as rare-earth permanent magnets required for advanced robot motors.

However, challenges remain. DSET analysts note that China still lags in critical core technologies, including high-end chips, advanced sensors, and precision machine tools. Additionally, current Chinese robotic models face limitations regarding autonomous task execution and the integration of advanced AI.