China's Humanoid Robot Push Creates Massive Capacity Boost: 'Technology Remains Too Slow, Unreliable for Widespread Commercial Use', cites Report

China’s humanoid robot industry is expanding rapidly on the back of government subsidies, state purchases and large-scale manufacturing, however, Reuters reports that the technology remains too slow and unreliable for widespread commercial use.

Government Push Drives Growth

China has more than 150 humanoid-robot companies, with governments playing a major role in funding, purchasing and supporting the industry. Public procurement data reviewed by Reuters showed that national, provincial and local governments spent at least $230 million on humanoid robots and related equipment in the first half of 2026, sharply higher than in previous years.

The strategy mirrors China’s earlier push into electric vehicles and solar panels: build manufacturing capacity early, provide subsidies and encourage intense competition to bring down costs.

China expects to build more than 100,000 humanoid robots this year, while Chinese manufacturers accounted for about 95% of global shipments last year, according to BofA Global Research.

Technology Still Has Limits

Despite rapid advances in hardware, humanoid robots still struggle with tasks that require flexibility, precision and the ability to respond when conditions change.

Reuters found robots at a training centre in Liuzhou moving slowly through basic tasks such as carrying crates and packaging goods. One staff member said the robots could complete simple tasks at about 20% of a human’s speed or output. For many factories, conventional robotic arms remain faster, cheaper and more reliable for specialised jobs. This limits the immediate commercial case for humanoid machines.

Demand Remains State-Driven

A major concern is that much of the current demand is coming from government purchases and subsidies rather than businesses buying robots because they are already profitable.

Reuters found examples of companies relying heavily on state contracts and financial support. UBTech, for instance, secured at least $123 million in contracts from state-owned enterprises in the fourth quarter of last year, exceeding its total humanoid revenue for 2025.

This has raised concerns that China could be building production capacity faster than the market can absorb it. Some investors and industry executives expect weaker companies to disappear or consolidate as subsidies are reduced.

China’s Long-Term Bet

The strategy is built around producing more robots, collecting more real-world training data and gradually improving their ability to work outside controlled environments. But the industry still faces major problems with reliability, dexterity, cost and commercial demand.

China may therefore gain an early lead in humanoid robotics even if many companies fail along the way. The immediate challenge is turning that manufacturing advantage into robots capable of doing useful work consistently enough to justify their cost.