China’s growing economic clout shapes EU budget talks and fuels a $200 bn humanoid‑robot market

The European Union is confronting deep divisions over its next seven‑year budget as member states clash on how to respond to rising trade tensions with the United States and China. Negotiations are complicated by a €4.1 billion fine imposed on Google for abusing its Android dominance, ongoing disputes under the Digital Markets Act, and a widening €360 billion trade deficit with China. EU leaders emphasise “de‑risking” supply chains, especially for rare‑earth minerals and other critical inputs, while acknowledging that a complete disengagement from Chinese suppliers would be economically costly.

At the same time, analysts at Barclays Research project that the global market for humanoid robots could reach $200 billion by 2035, driven largely by China, which already accounts for about 85 % of worldwide installations. The report forecasts up to 24 million humanoid robots in Chinese workplaces, representing roughly 4 % of its current labour force. Chinese start‑ups such as AI² Robotics and X Square Robot have raised billions in funding, and several firms are preparing IPOs, underscoring Beijing’s push to dominate the emerging “physical AI” sector.

Both developments illustrate how China’s expanding economic influence is prompting policy debates in Europe and reshaping technological investment patterns worldwide.