China Tech series - Robotics has emerged as a key investment theme with multiple catalysts
Robots are moving from lab demos to real-world work, and China is leading this shift. They are the key highlight of the recent Spring Festival Gala, China’s most‑watched TV program every Chinese New Year, signifying its importance.
Backed by fast-advancing AI, deep manufacturing know-how and strong policy support, China has become the world’s largest robotics market and a rising force in humanoid and embodied AI systems.
Image: Getty Images
Driven by (1) government policy support, (2) surging demand, (3) China’s competitive edge vs other countries and (4) a growing investment universe in the robotic sector, robotics has emerged as a key investment theme with multiple catalysts.
Globally, the development of robotics is still at early stage. China robotics could present an attractive opportunity for long-term investors wanting to tap into this rapidly growing industry.
1. Government policy support
This year, the stage of the Spring Festival Gala became a showcase for China’s technological ambitions. From humanoid robots performing high‑precision martial‑arts to coordinated complex movements alongside human dancers, they were pushing the boundaries of humanoid robot and embodied AI in front of the global audience.
Within the first two hours of the Gala's broadcast, searches for robots on an e-commerce platform surged more than 300% compared to the previous period. Customer inquiries increased by 460%, and order volumes rose by 150%1. The new orders covered over 100 cities nationwide, spanning from first-tier metropolises to smaller counties.
Far more than entertainment, the performance served as a key signal of state priority, with major robotic firms investing heavily to demonstrate breakthroughs that align with China’s strategic push to lead in next‑generation robotics and advanced manufacturing.
The upcoming 15th Five‑Year Plan (2026–30) also places embodied intelligence and advanced manufacturing at the centre of China’s strategic agenda, strengthening both the policy and capital support for the sector.
2. Upcoming demand for robotics paints a rosy picture
By deploying robotics, manufacturers can benefit from increasing efficiency and much lower cost. Automation not only accelerates production cycles but also improves quality consistency, enabling firms to scale up without proportionally increasing headcount.
Industrial demand for robotics is increasing across automotive, lithium battery and semiconductors sectors2. Electrification and battery capacity expansion are driving a new wave of automation needs in China.
Industrial robot sales are projected to increase 13.6% in 2025, while industrial robot demand is projected to grow at 11.7% and 12.5% in 2026 and 2027 respectively3, with collaborative robots being the fastest growing category.
Source: Macquarie, Marketing Intelligence Resource (MIR), as of February 2026.
On the humanoid front, Chinese humanoid exhibitors comprised over half of the category at the recent Consumer Electronics Show (CES) 2026, signalling the real scale behind the headlines. From getting your bento delivered by humanoid to service robots in banks and hospitals, robotic use cases are expanding to our daily lives across the country.
It is believed that there will be multi-fold shipment growth into 2026-27 as firms focus on dedicated tasks (e.g. catering, hospitality, logistics) 4. Moreover, a recent survey reveals that 62% of the C-suites across various industries in China would like to deploy humanoid by 2027, showing that the willingness of humanoid adaptation remains strong5.
It is still early stage for this rapidly growing industry. With robust demand, investors could position now, aiming to benefit from the potential sector-wide rally during mass adaptation in the near future.
3. China’s competitive edges
China’s vertically integrated supply chains compress development cycles and costs, which will be a key advantage to power robotics.
Furthermore, product iteration cycle of several Chinese robotic firms is shortened to around 6-8 months per generation6, which is at par or potentially shorter compared with their key competitors around the world.
Chinese robotic firms are teaming up with domestic technology giants to foster partnerships or integrate their products with established AI models.
Source: Macquarie, Marketing Intelligence Resource (MIR), as of February 2026.
With rising technological and cost competitiveness, China robotic manufacturers have expanded beyond the domestic market and captured 54% global market share in 20257.
4. A growing universe for robotics in China’s A-share market
China’s robotic ecosystem spans actuators, servomotors, sensors, controllers, industrial arms, collaborative robots and embodied-AI platforms.
Many leading robotics firms are listed in China’s A-share market. They can potentially offer diversified exposure for investors, from components to full systems throughout the value chain.
Meanwhile, listings tied to robotics have drawn strong investor interest. Robotics IPO activity has accelerated in China8, as capital-intensive players tap markets to fund commercialization and product development.
Conclusion
China’s robotics industry is moving from prototype to commercial reality at breakneck speed.
Backed by policy support and strong demand, world-class manufacturing, deep AI integration, and expanding capital-market participation, the sector is shaping up to be potentially one of the defining investment opportunities of the next decade.
For investors seeking exposure to transformative technologies, China’s robotics story is only just beginning.
Investment risks
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
Forward-looking statements are not guarantees of future results. They involve risks, uncertainties, and assumptions; there can be no assurance that actual results will not differ materially from expectations.
