China relies on AI robotics as a growth driver

Why AI-powered robotics is becoming strategically more important in China

With its 15th five-year plan, China has placed robotics at the center of its new industrial strategy. According to the International Federation of Robotics, AI research is to be more strongly oriented toward physical applications. Robotics is being positioned as a main driver of economic growth.

The figures from the IFR’s annual report “World Robotics 2025” illustrate the starting point: China’s manufacturing industry already has an operating stock of around 2 million industrial robots. This corresponds to roughly 4.5 times the stock in Japan, which ranks second worldwide. In addition, 54% of all industrial robots installed worldwide each year are accounted for by China.

“The new five-year plan of the People’s Republic of China serves as the most important framework document that defines the overarching direction for all further government measures,” says Takayuki Ito, president of the International Federation of Robotics. “Thousands of subordinate, sectoral and regional plans must now be aligned with the new goals. With this framework, China is shifting its focus from traditional industrial automation to high-quality, intelligent robotics combined with artificial intelligence.”

How China is making AI robotics visible

The new five-year plan sees the central benefit of AI in its practical application in business and industry. To demonstrate its expertise and international competitiveness in the field of “embodied intelligence,” China is showcasing humanoid robots that can walk or dance.

Such demonstrations have recently become visible worldwide, including during the televised celebrations for the Chinese New Year and at the humanoid robot half marathon in Beijing. These public appearances show how important the topic is for the country’s technological image abroad.

At the same time, the industrial reality remains more limited. As the announcement points out, the actual capabilities of humanoid robots in real production scenarios are currently still confined to demonstration models or pilot projects. The humanoid platform itself and the artificial intelligence used in it are also not necessarily developed at the same time or by the same market participants.

What industrial robots have ahead of humanoid systems

The comparison between humanoid robots and classic industrial robots reveals fundamental differences. Critics point to the principle of “form follows function”: The human body is not optimally suited for certain tasks.

Compared with humanoid robots, conventional industrial robots usually have fewer joints, which are designed for specific tasks. This leads to simpler control concepts that can operate faster and more reliably than humanoid systems.

In industrial manufacturing, what matters are repetitive processes, high speed, and precision down to the millimeter. This is exactly where traditional industrial robots excel. They carry out highly specialized movements quickly, precisely, and consistently. When extreme specialization is required, they generally outperform their humanoid counterparts.

Humanoid robots, by contrast, follow a more general approach. They combine mobility with human-like interaction. This can offer advantages, especially for service tasks. In such applications, humanoids could surpass conventional machines.

When humanoid robots will become commercially relevant

A broad market launch of universal humanoid helpers in factories or private households is not expected in the short or medium term. The 15th Five-Year Plan anticipates the commercialization of humanoid robots more toward the end of the planning period.

The situation is different for traditional industrial robotics. According to the statement, a broad introduction of AI in this field is expected over the next five to ten years. As a result, industrial automation will initially continue to be heavily shaped by classic robot systems, while AI functions will be integrated step by step.

How large China’s domestic market potential is

The Chinese domestic market offers considerable potential for implementing the 15th five-year plan across various sectors. At the same time, domestic manufacturers are becoming more important. The share of Chinese suppliers in industrial robot installations rose from 30% in 2020 to 57% in 2024.

The trend becomes particularly clear in specific industries. In the global electronics industry, 64% of industrial robots are installed in China. Chinese manufacturers supply 59% of domestic users in this sector.

In the metal and mechanical engineering industries, the domestic market share of Chinese robot suppliers is even higher, reaching 85%. In this way, the new five-year plan links industrial policy objectives with an already rapidly growing domestic robotics market.

With material from the IFR