Chinese humanoid robot startups are actively shipping robots to factories and malls, directly impacting the organization of labor and the potential for surplus extraction in industrial and service sectors. This deployment contrasts with U.S. rivals, which remain focused on development and securing significantly higher valuations, indicating a divergence in capital's strategy for accumulation. The immediate integration of automation into workplaces signals a new phase in the ongoing drive to reduce labor costs and maximize efficiency for capital owners.
AI2 Robotics, a Chinese firm, is rolling out its robots at airports in China and within semiconductor and healthcare factories. This direct application of advanced robotics into critical infrastructure and production facilities points to an accelerating trend of labor displacement and wage suppression through automation. CEO and founder Eric Guo stated that a large foreign high-end manufacturer chose AI2's robots over a U.S. startup's for factory work, underscoring the practical, commercialized deployment of these machines. Guo also asserted, "Commercialization and tech capability aren't contradictory," a statement that frames the drive for profit as inherently linked to technological advancement.
Who Profits
The financial valuations of these companies reveal the scale of anticipated profit. U.S. humanoid robot startup Figure commands a valuation of at least $39 billion, while Texas-based rival Apptronik achieved a $5 billion valuation in February of the same year. These figures position U.S. firms as speculative ventures in wide-reaching artificial intelligence platforms, as noted by Rui Ma, founder of Tech Buzz China. In contrast, Chinese startup Galbot holds a $3 billion-plus valuation, with AI2 Robotics achieving a 20 billion yuan, or $2.93 billion, valuation. These Chinese firms are seen more as industrial hardware plays, directly facilitating the automation of production. Galbot's backers include capital from China, Singapore, and the Middle East, demonstrating a globalized network of investors seeking returns from this technological shift. Winston Ma, adjunct professor of law at the New York University School of Law, highlighted that roughly 90% of U.S. venture capital flows into software, leaving a critical financing gap in hard tech that sovereign funds are uniquely positioned to fill. Middle East funds, in particular, have backed Chinese venture capital and purchased locally developed robots as Gulf countries seek to transition away from fossil fuels, indicating a flexible approach to capital accumulation across geopolitical lines.
The State's Role
Geopolitics has complicated the investment landscape, with U.S.-China tensions and domestic national security policies chilling cross-border investment. This state intervention has led large U.S. pension funds to reduce their exposure to Chinese startups, demonstrating how state apparatuses actively shape capital flows to protect perceived national interests. The appearance of a Figure robot beside U.S. first lady Melania Trump at a White House event in March of the same year also signals state endorsement and promotion of specific domestic tech capital. Meanwhile, Hong Kong plans to halve the tax rate on profits from trading certain commodities, a direct state policy designed to draw global players and their capital to the finance hub, further facilitating profit extraction.
What Capital Did Next
Chinese humanoid startups secured the top six spots in Omdia's 2025 rankings of global robot shipments, with Figure and Tesla being the only U.S. companies in the top 10. Tesla's Optimus robot remains largely in development, while Chinese firms are already deploying. Cameron Johnson, senior partner at Tidalwave Solutions, noted that Americans are now coming to Shenzhen to acquire humanoid robot parts for integration with U.S. software, indicating the globalized nature of the supply chain for these tools of automation. The broader economic context shows China's economy grew by 5% in the first quarter of the same year, with first-quarter GDP rising by a better-than-expected 5% from a year ago. However, retail sales missed expectations with a 1.7% year-on-year increase in March, and exports slowed their growth to 2.5% as the Iran war impacted global demand. Last week of the same year, Chinese robotaxi company Didi announced expansion plans in the Middle East during a business forum organized by the United Arab Emirates with China, further extending the reach of Chinese capital into new markets.