Perhaps you were one of the people who were alarmed when Chinese firm DeepSink released its powerful AI R1 a couple months ago, rivaling U.S. AI efforts but supposedly developed much cheaper and much faster. It was a reminder that, when it comes to AI, China is not to be taken lightly; the battle for AI supremacy is far, far from over.
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They're coming. Credit: Unitree Robotics |
Well, when it comes to robots – especially AI-powered, humanoid ones -- the battle may be closer to being over…and the U.S. is not winning.
China’s
robotics version of DeepSink may be Unitree
Robotics. Or UBTech.
Or maybe Agibot or Pudu Robotics. You get the point.
Speaking specifically
about Unitree Robotics, Kyle Chan, an expert on Chinese industrial policy at
Princeton University, told
The Washington Post: “They
are almost the symbol of China’s ability to operate at the cutting edge of
robotics. They’ve become kind of like the DeepSeek of the robotics world for
China.”
WaPo reports
that there are almost half a million smart-robot firms registered in China,
with a combined market cap of almost a trillion dollars. Morgan Stanley recently
noted that China had 5,688 patents containing the word “humanoid” over the
past five years; by comparison, the U.S. had 1,483.
Yeah, they
take smart robots seriously in China.
The Morgan
Stanley report commented: “Our research suggests China continues to show the
most impressive progress in humanoid robotics where startups are benefitting
from established supply chains, local adoption opportunities, and strong
degrees of national government support.”
“You won’t
have to retrofit your factory, warehouse or home to accommodate a
humanoid—that’s the future promise,” Jeff Burnstein, president of the
Association for Advancing Automation (A3), a trade group in Ann Arbor, Mich, told
The Wall Street Journal.
It won’t
stop just at factories. Ming Hsun Lee, head of Greater China automotive and
industrials research at BofA Global Research, told
CNBC: ““I think in the short-term, three to four years, we will see
humanoid robots initially applied in production lines to compare some workers,
and in the midterm, we will see them gradually spread into the service industry.”
Unitech
CEO Wang Xingxing told TMTPost:
“Within our lifetime, humanoid robots will be able to revolutionize every
industry, from industrial and service sectors to agriculture and manufacturing,
On an even grander scale, governments could deploy 100,000 humanoid robots to
build an entire city.” Mr. Wang is clear about the reason for the progress: “The
reason we’ve progressed so quickly is simple: the rapid advancement of AI
technology.”
Similarly,
Reyk Knuhtsen, analyst at SemiAnalysis, an independent research and analysis
company specializing in semiconductors and AI, told
CNBC: “China has the potential to replicate its disruptive impact
from the EV industry in the humanoid space. However, this time the disruption
could extend far beyond a single industry, potentially transforming the labor
force itself.”
A recent “call to action” from SemiAnalysis was blunt:
Automation and robotics is currently undergoing a revolution that will enable full-scale automation of all manufacturing and mission-critical industries…The only country that is positioned to capture this level of automation is currently China, and should China achieve it without the US following suit, the production expansion will be granted only to China, posing an existential threat to the US as it is outcompeted in all capacities.
SemiAnalysis
notes China has already captured the markets for batteries, solar, and EV, and
warns that the economies of scale allowed by robotics “will be exponential
compared to their last strategic industry captures.”
WaPo notes how Chinese robotics companies are already driving costs down (again, similar to what they’ve done with batteries, solar, and EVs):
Unitree has built its business model on competitive pricing. The company’s cheapest robot dog goes for $1,600, according to its website, while a humanoid robot costs $16,000. A robot dog from Boston Dynamics, by contrast, goes for around $75,000.
Liu
Gang, a professor at Nankai University in Tianjin who researches China’s
innovation economy, explained
the strategy to WaPo: “We are picking a path where we lower the
costs for innovation and industrialization, When many can do things with a
comparable quality, whoever makes it more cheaply will have a bigger chance to
win.”
That’s
going to make it increasingly harder for the U.S. to compete. And that’s a huge
problem. When President Trump and others talk about bringing manufacturing back
to the U.S., in large part what they want are all those well paying (human) jobs,
but, to use the Wayne Gretsky metaphor, they may be skating to where the puck
used to be.
Recently U.S.
robotics leaders Agility Robitics, Boston Dynamics, Tesla (think Optimus robots,
not Cybertrucks), along with A3, have
called for a national strategy for AI-powered robots, much as China has
developed (and funded). “The United States is at a critical moment in shaping
the future of automation,” said Mr. Burnstein. “While AI is a major focus, we
cannot afford to fall behind in robotics.” The strategy includes dedicated
federal office to coordinate robotics policy, innovation, and industry
collaboration, tax incentives, and funding public-private research partnerships
to spur innovation.
According
to Jeff Cardenas, co-founder of Austin-based humanoid startup Apptronik: “The next robotics race is powered by AI and is
up for grabs.”
Let’s hope
so, anyway. The U.S. is terrible at industrial policy – just ask our steel,
shipbuilding, or even chips industries. We still haven’t figured out what we
should do about/for AI, other than to hope American ingenuity will save the
day.
The U.S.
shouldn’t be looking at how to strengthen our oil, gas, or coal industries; we
shouldn’t worry so much about gasoline-powered automobiles; we shouldn’t be
building multi-million dollar fighters or billion dollar aircraft carriers.
Those were all important 20th century industries/technologies, but,
hey, this is the 21st century.
The 21st
century – and the 22nd – will belong to the countries and industries
that best adopt to/innovate in 21st century technologies. Like AI
and robotics.