Why it’s nearly impossible to build a robot without China

Japan, once the undisputed global leader in robotics, is now facing a significant challenge from China, which has rapidly emerged as the dominant force in the humanoid robot market. For decades, Japanese innovation, from early grasping robots to Honda's humanoid ASIMO, captured the world's imagination. However, at a recent Humanoids Summit in Tokyo, the focus shifted from celebrating past achievements to strategizing how Japanese companies can compete against increasingly powerful Chinese rivals.

Chinese manufacturers now dominate the entire humanoid robot supply chain, including components like sensors and joints, which were once sourced from foreign suppliers. Startups such as Unitree Robotics are producing thousands of humanoid robots priced under $5,000, a scale and affordability that Japanese and other international competitors find difficult to match. "The component cost in China has gone down way too fast – other countries can’t compete," noted Ming Hsun Lee, head of greater China industrials at BofA Global Research.

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It has become nearly impossible to build a humanoid robot without parts from Chinese companies.

Despite the rapid advancements in humanoid robot production, finding practical, widespread applications remains a challenge. Even robotics executives acknowledge that current models are far from performing the complex tasks that fueled the industry's initial excitement. However, China has established a commanding lead in a more economically impactful segment: factory automation. In 2024, China's factories operated over 2 million robots, with an additional 300,000 installed – more than the rest of the world combined.

While the promise of versatile humanoid robots is still unfolding, China's aggressive manufacturing capabilities and focus on industrial applications have cemented its current leadership in the robotics sector. This shift signifies a major change in the global technological landscape, with implications for manufacturing, automation, and future innovation worldwide.

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The component cost in China has gone down way too fast – other countries can’t compete.