HONG KONG (AP) — Humanoid robots manufactured in China are capturing attention with their capabilities to perform backflips, manage traffic control, and prepare coffee beverages, as manufacturers seek methods to grow and control the marketplace.
Chinese robot manufacturers report receiving thousands of purchase orders from government agencies and private companies for humanoids capable of tasks like package sorting at mail facilities, as the nation addresses challenges from an aging workforce and increasing labor expenses. Nevertheless, industry analysts suggest that consumer interest in humanoids falls behind manufacturing capabilities.
Both China and the United States lead research in what Morgan Stanley projects as a $5 trillion humanoid robotics industry.
In certain areas, America maintains advantages in creating artificial intelligence systems for advanced computational functions, or the “brains” of these machines. However, as the global manufacturing hub, China excels in large-scale production abilities, hardware component supply, and data collection for robot training purposes.
Matrix Robotics, a Shanghai-based company, produces AI-powered humanoid robots. Their primary model, called the “MATRIX-3,” measures approximately 5.6 feet (1.7 meters) in height and features hands capable of precise movements. Each unit sells for roughly $99,000.
Buyers for the company’s approximately 1,000 orders include coffee shop chains and hospitality businesses, according to founder and CEO Allan Zhang, a former Tesla employee, speaking at a robotics exhibition in Macao.
Matrix has manufactured only several hundred robots thus far, although the company states it can deliver 5,000 units this year based on order volume.
EngineAI, a company located in Shenzhen in southern China, reports its full-size humanoid robots serve as security personnel and museum tour guides. The robots also entertain through dance and boxing demonstrations.
Their basic humanoid model costs 180,000 yuan ($26,600). “The next step will be to move into more real-life scenarios,” said Issac Li, EngineAI’s head of brand and marketing.
Many humanoid robots remain demonstration-focused rather than practical, unable to operate effectively in chaotic, unpredictable settings, according to Samm Sacks, a senior fellow at the New America think tank focused on Chinese technology.
“The use cases of these robots are still so limited,” said Chibo Tang of the venture capital firm Gobi Partners, which invests in technology startups including robotics companies. “Without the demand and without that scale from the market, these companies are not able to really go into mass production.”
China operated more than 140 humanoid robot manufacturers producing over 330 models in 2025, per the Ministry of Industry and Information Technology. The Chinese government issued public warnings last year about potential industry speculation given slow commercialization and application progress.
Research institutions and corporate laboratories purchase humanoid robots for study purposes. In China, much of the more than 2 billion yuan ($295 million) in orders during 2025 originated from government-owned companies for deployment in power facilities, data centers, or entertainment venues, Morgan Stanley reported.
“The economics are tough: humanoid robots remain expensive to produce, fragile in operation, and dependent on highly structured environments to function,” Sacks explained. There’s “a long way to go to get to a level of functionality where people will actually feel comfortable having them in their homes providing care for elderly or children,” she said.
Industrial and logistics environments offer more realistic commercial opportunities, Sacks noted. However, numerous factories in China and other countries already utilize non-humanoid robotic arms for repetitive individual tasks and may not require additional humanoid robots.
Humanoid robot companies in Japan and the United States also face difficulties locating industrial and workplace customers.
Despite these challenges, real-world humanoid robot deployment in China has gained momentum over the past year.
Chinese citizens are comparatively “used to this rapid change in terms of technology,” said Ye Tian, an ex-Apple engineer and founder and CEO of the Chinese startup RoboScience, which focuses on developing the systems behind AI-powered robots.
With technological advancement, humanoids may handle heavy lifting and routine tasks in storage facilities, manufacturing plants, and shipping ports, according to Lian Jye Su, with the technology research group Omdia.
Humanoid robots can also address gaps in dangerous or repetitive work environments, Matrix’s Zhang explained. He envisions a “very large household market” for managing domestic tasks in hundreds of millions of Chinese homes.
In Beijing, freelance social media content creator Yang Ning recently tested a cleaning service featuring a helper robot with mechanical arms and hands. The machine handles basic tasks like shoe organization, clothing folding, and trash bag replacement, but works alongside a human cleaner.
Observing the robot arrange shoes at her entrance was “amazing,” she reported. However, she found the helper robot inefficient and “a bit too big and difficult to move around in a small house.”
Chinese humanoid robots represented approximately 85% of global production last year, per a recent Barclays research analysis.
Chinese companies benefit from substantial government backing, consistent with the ruling Communist Party’s 2026-2030 five-year strategy targeting technological frontiers, including humanoid robot development.
Among the more than 13,000 humanoid robots delivered in 2025, AGIBOT and Unitree, two leading Chinese robotics firms, each shipped over 5,000 units, while American competitors like Figure AI and Tesla shipped several hundred or fewer, according to Omdia.
Morgan Stanley anticipates China’s humanoid sales will more than double this year to approximately 28,000 units. Omdia predicts annual advanced robot shipments could exceed 1 million units by the early 2030s.
Several robot manufacturers claim profitability. Unitree reported 1.7 billion yuan (around $250 million) in revenue last year, earning over 278 million yuan ($41 million) in profit.
Manufacturers contend that increased humanoid robot production will reduce costs. Greater use of domestically produced components has made Chinese robots 20% or more less expensive than international alternatives on average, Morgan Stanley noted. The firm estimates average pricing could decrease to approximately $21,000 by 2050, down from $46,000 last year.
Some Chinese humanoid robots carried price tags below $6,000.
A Mercator Institute for China Studies report stated that while Chinese humanoids cost less than foreign-made versions, they remain “far too expensive for widespread deployment.”
Manufacturers face another obstacle in gathering sufficient quality data for robot training.
Wang Xiaogang, co-founder of Chinese AI software company SenseTime and chairman of ACE Robotics, said his organization collects extensive human-centered data from manufacturing, retail, and office environments to guide advanced robots in performing complex tasks.
For humanoid robots to master multiple functions, data from diverse scenarios in public and private locations with appropriate difficulty levels is required, explained Eric Guo, founder and CEO of Shenzhen-based AI² Robotics. However, massive scaling could require years to achieve.
“The mass production capability in (the) robotic area is still at the very early stage,” Guo said.
