How China is winning the race for smart robotsBizarre footage of ‘terrifying’ humanoid Chinese robots has terrified people across the world. Now, we have the real story.Jamie Seidel@JamieSeidel6 min readFebruary 23, 2026 - 5:13AMRosie the robo-maid; Made in China?The Terminator T-800: Built by Beijing?C3PO the protocol droid: Constructed for the Chinese Communist Party?Chairman Xi Jinping’s “common prosperity” economy is forging ahead and it has taken an early lead in building androids.The evidence is all over social media. Droids doing dance routines. Cybermen patrolling city streets. Sword-wielding automated assassins.And it’s not science fiction. Well, not quite.More than a few bugs still need to be ironed out.But the chances are that your future dishwashing, bed-making, kitchen hand will come with a “Made in China” tag attached. Not to mention those doing most other forms of labour people used to get paid for.Scienceworks Star Wars exhibition. R2D2 and C3PO on Tatooine.We’re not talking about the single-arm, single-purpose bots already dominating the manufacturing industry.We’re talking “Embodied AI”.XPeng’s humanoid robot IRON made its street debut at MixC Shenzhen Bay. Picture: @Byron_Wan/XThe Robotera L7 robot, powered by AI, pulls off some insane Kung Fu moves during a dance. Picture: @XRoboHub/YouTubeThat’s a thinking machine brain attached to its own flexible, adaptable, self-learning body.An android.Something that can do almost anything you demand of it.Or that it decides to do for itself.“Beijing is making a long-term strategic bet on embodied AI, viewing it as a potential solution to many of China’s economic, social, and geopolitical challenges,” argues a recent Carnegie Endowment research paper. Its population is ageing. Rapidly.A child interacts with a humanoid robot during an interactive technology display in Beijing, China. Picture: Vincent Thian/APA humanoid robot wearing a traditional headdress is displayed during a media preview of a robotic temple fair ahead of Lunar New Year in Beijing, China. Picture: Vincent Thian/APSo strong, adaptive robots are being seen as a solution to aged care.And to fill growing workforce gaps. The Chinese Communist Party isn’t the only global force to see the potential of independently thinking and acting machines.So too does the world’s richest man, Elon Musk.He’s betting big on his Optimus humanoid robot. And similar billionaire-backed startups around the globe are presenting their own enhanced-productivity prototypes.All have serious implications.For privacy. And security.“Converging trends in robotics and AI present a new and potentially profound challenge to the safety of individuals and – in the worst cases – the security of the United States and possibly Humanity,” a new RAND Corporation research paper asserts. “The combination of AGI (Autonomous General Intelligence) with robots that feature high mobility and dexterous manipulation could introduce significant systemic vulnerabilities.”Elon Musk standing on stage next to Optimus the humanoid robot in Palo Alto, California on September 30, 2022. Picture: Tesla/AFPAll about Embodied AIFirst comes the machine.An artificial body with wide freedom of movement. It must be strong. It must be able to manipulate its surrounding environment.To do this, it needs the equivalents of sight, sound and touch.This is where the brain comes in.The AI must be able to interpret its environment. It must be aware of its own strengths and limitations. And it must be able to make its own decisions, plan a course of action – and learn from its mistakes.“Embodied AI systems stand apart for their ability not only to interpret data but also to interact with and adapt to diverse physical environments,” the Carnegie report states.This sets them apart from other AI devices, such as CT scanners, air traffic controllers and digital “agents” on desktop and personal devices.Some early examples are already on the market as general-purpose industrial assistants. Such as the UBTech Walker S2. “However, neither China nor the West have achieved the fully autonomous systems grounded in continuously updated world models that some imagine as the foundation for embodied AGI,” the Carnegie researchers state.It’s a problem putting pressure on Elon Musk’s plans to earn a trillion-dollar paycheck.Tesla released a slick demonstration video of its humanoid robot last year. Optimus did what its owner told it to do: fold clothes, cook dinner, and take out the trash.It was intended to demonstrate its evolution from social media gimmick to consumer appliance.This video screen grab made from Tesla AI Day 2022 livestream shows staff bringing Optimus the humanoid robot, on stage in Palo Alto. Picture: various sources/AFPThe latest generation Optimus can learn by watching YouTube videos. It doesn’t need specialised individual coding.It interprets instructions, then extrapolates them to its own circumstances.Musk promises Optimus will be coming to a store near you by 2030, with up to one million units rolling off the production lines each year. One will set you back a mere $US20,000 ($A28,000).But China’s already stolen the march.“Compared to the rest of the world, China’s advantage in embodied AI lies in its robust hardware manufacturing base and supply chain, which could position it to rapidly scale production once the technology matures,” the Carnegie researchers state.Party prototypes“China’s embodied AI push reflects a deliberate effort by the government to translate advances in generative AI from the purely digital realm into what Beijing frequently refers to as the real economy: sectors encompassing the production of tangible goods and essential services that underpin economic activity in the physical world,” the Carnegie analysts state.Chairman Xi Jinping is keen.China's President Xi Jinping. Picture: Minh Hoang/pool/AFPHe’s constantly pushed for integrating digital innovation with the real economy since taking power in 2012. His speeches reveal his conviction that this is the key to long-term economic growth.So the “Great Helmsman” has put in place long-term incentives, education, subsidy and support programs to get his country’s robotics engineers into high gear.“The release of DeepSeek’s R1 model in January 2025 made it clear that China’s capabilities in AI were becoming increasingly mature,” Carnegie states.Now the Chinese Communist Party wants to take the next step.Recent government reports and speeches are emphasising embodied AI as an imperative. It even features prominently in its upcoming Five-Year Plan for Economic and Social Development.“Chinese leadership appears determined to push forward, committing substantial political will and financial resources to make embodied AI a viable and scalable technology,” the Carnegie analysts conclude.A maid robot. Pictur: @bisharae via @storysforpeople1/XWestern interest in humanoid robots is largely confined to the private sector.There is Boston Dynamics and Figure AI. Both have attracted significant investment.Similar startups can be found in Japan, the UK and Europe.For its part, the Chinese Communist Party is encouraging healthy competition between its provincial government commisarats.Beijing, for example, has committed $US14.3 billion ($A20 billion) into a 15-year investment fund. Shanghai has put forward $US77 million ($A110 million) as a down payment on its own fund.Response to such incentives has been strong.Leaders are emerging. There’s Unitree and UBTech. But dozens of others are snapping at their heels.So much so that Beijing is expressing concerns that it may have produced an economic “robo-bubble”.“Speed and bubbles have always been issues that need to be grasped and balanced in the development of cutting-edge industries,” National Development and Reform Commission (NDRC) spokeswoman Li Chao told a news conference in Beijing.The problem, she said, was that 150 Chinese humanoid-robot companies were building too many versions of the same product for the same markets.A staff member adjusts a festive headpiece on a humanoid robot during a media preview of a robotic temple fair celebrated ahead of Lunar New Year in Beijing. Picture: Vincent Thian/APMachines of love and grace“Robotic systems work in homes and public places, guide automobiles and delivery vehicles, and fly drones – such as those that spray crops or deliver packages. How might their abilities amplify the consequences of malicious behaviours?” asks a new RAND Corporation report. Autonomous cars are already being hacked.And the tendency of large-language AI systems to “hallucinate”, lie, and protect themselves has been demonstrated.So what if such foibles came with hands and legs?“It may be possible to send malicious instructions – beyond merely downloading malicious software code – to future robots to compromise their AI control systems and then exploit them for criminal or violent purposes,” RAND warns.RAND isn’t the only organisation to raise such fears. The Europol Innovation Lab has also just released a report on potential criminal abuse of humanoid robots. Robot hijackers. Machine terrorists. Android-enabled espionage agents.A humanoid robot and robot dogs dressed as lion dancers perform on a stage during Lunar New Year celebrations. Picture: Kevin Frayer/Getty ImagesThey move very human-like. Picture: Kevin Frayer/Getty ImagesAutonomous humanoid robots must understand what they’re doing. And that understanding (of KFC’s secret spices, Coke’s secret recipe and the F-35 strike fighter’s special stealth sauce) must be processed in databases that the Chinese government demands open access to.Canberra has already warned politicians and senior bureaucrats not to drive Chinese-made cars. National security agencies warn that these vehicles are feeding their data back to Beijing. Drivers can be tracked. Conversations can be listened to. And autonomous functions may be subject to remote control.More CoverageFootage of China’s robots terrifies worldErin ChristieAussies charged over China ‘spy thriller’Nathan SchmidtBut dextrous, adaptive, problem-solving robots are in another league altogether.“In addition to the economic risks, China’s dominance would create a host of national security risks … robot insider threats, at scale, that enable covert surveillance and espionage, sabotage and physical threats, and new vectors for cyberattacks,” warns RAND.“Activating a kind of robotics insurgency, highly capable adversaries or misaligned AGI could co-ordinate large-scale attacks to destroy critical infrastructure, impede the deployment of military forces, and inflict physical and psychological harm.”Read related topics:ChinaMore related storiesInventionsFootage of China’s robots terrifies worldChina’s flagship television event has given a bleak look into the future for the human race, leaving viewers blown away and terrified.Read moreInventionsLego’s ‘biggest change in 50 years’ under fireLego’s new Smart Brick has wowed fans but it’s also come under scrutiny for the high price tag and claims it could hinder – rather than aid – kids’ creativity.Read moreEnvironmentInside doomed climate future Aussies faceAustralia is staring down the barrel of a worsening weather and climate crisis after a bombshell report spelled doom for local economies.Read more