Chinese Internet Giants Develop Robotics and AI for the Physical World, Creating Smart Delivery Empires

Last Friday, Xi Jinping positioned Beijing as a defender of a new world order in the field of artificial intelligence. During a prestigious Chinese technology conference, he actively promoted open-source technologies and challenged US influence regarding the regulation of this rapidly evolving industry.

Address at WAIC Conference

Speaking at the opening ceremony of the World Artificial Intelligence Conference (WAIC) in Shanghai, Xi called on countries to take advantage of the 'rare and historic opportunity' of open AI. He also pledged support to developing nations in advancing AI capabilities, warning against the threat of 'new historical injustices' due to unequal access to this technology.

These statements represented the clearest articulation of China's ambitions to shape global AI governance. Xi presented his open-source models as a public good for the entire world, positioning Beijing as an alternative to Washington at a critical juncture in the race for technological leadership.

Vision for Global Cooperation

Comparing the significance of AI to the invention of the steam engine and electricity, Xi outlined his vision wherein China would share AI technologies and experience with Global South nations while leading global efforts to establish standards for this new technology. His initiative with the AI coalition was presented as a competitor to the international initiative led by the US, known as 'Pax Silica,' aimed at securing global AI supply chains and critical minerals, although Xi avoided direct mention of Washington.

AI Competition and Security

Xi's comments came amid the rapid progress of Chinese open-weight AI models against the proprietary systems of American companies such as OpenAI and Anthropic. On Friday, the Beijing-based startup Moonshot AI unveiled Kimi K3, which was named the largest open-source AI model by parameter count. This occurred a month after the US government abruptly withdrew advanced Anthropic AI models due to safety concerns.

Furthermore, Xi insisted that AI systems must remain under human control, urging countries to create early warning and emergency response mechanisms to manage AI risks. He also emphasized the need for measures to prevent loss-of-control scenarios, warning about the dangers of autonomous AI systems that might evade human oversight and control.

China's International Partnership

Xi stated that the China AI Cooperation Organization, established in China and adopted by 29 member states on Thursday, marks a 'milestone in the development of global AI' and meets the demands of Global South countries for more active participation in AI governance. Moreover, Xi announced that China would provide AI training and develop AI cooperation centers with BRICS, ASEAN, Latin America, and the African Union countries, thereby aligning China's diplomatic initiatives in AI with major Global South blocs where China already holds significant influence.

George Chen, Head of Digital Practice at the consulting firm The Asia Group, noted: 'Xi's message is clear: China does not intend to follow anyone, neither in AI technologies nor in standards. Instead, China intends to lead the world in both aspects.' He added that Xi's message is a statement that can also be viewed as a warning—China will not allow anyone to dictate how it uses AI.

Prospects of Geopolitical Rivalry

The event, running from July 17 to 20, takes place against the backdrop of Washington and Beijing preparing for the first bilateral government-level negotiations on AI under the administration of US President Donald Trump. This transforms WAIC from an industry exhibition into an early test of how China plans to compete for influence in global AI regulatory rules. Last week, the two powers presented competing concepts during the UN AI dialogue, where US representatives argued that excessive regulation could slow innovation, while China promoted its low-cost open-source models as a tool to reduce global inequality in AI access.

Chinese companies are implementing humanoids in real-world scenarios to collect data and develop machines capable of performing human tasks, marking an ambitious strategy by the country.

Focus on Embodied Intelligence

According to Bloomberg, current investment is concentrated on embodied intelligence, a technology that combines robotics and artificial intelligence to create equipment better suited to the physical environment. Examples include a humanoid robotic arm organizing snack packages on a shelf near Beijing, or workers recording simple actions, such as folding sheets or removing pillows from sofas, whose images will be used to refine the robots' AI systems.

Distinctions in the Chinese Strategy

This evolution signals a shift in focus for Chinese industry. After gaining attention with the martial arts movements of the Unitree Robotics G1 model, manufacturers have started prioritizing the machines' learning capacity. Giants like Alibaba and Xiaomi, along with sector startups, are creating embodied intelligence models that allow robots to acquire knowledge through physical experiences.

The Chinese approach differs from the American one, where companies use purchased data, simulations, and low-cost labor in countries like India and Vietnam. Chinese manufacturers, on the other hand, seek to place their own robots in authentic situations to generate self-learning.

Humanoids as a Solution to Labor Shortages

The presence of industrial robotics in China is already notable. Data cited by Bloomberg indicates that the country installed about 300,000 robots in 2024, compared to approximately 38,000 in the United States. Due to population aging, Beijing sees humanoids as a way to mitigate the impacts of a potential labor shortage. Barclays analysts project that such machines could cover up to 60% of a future personnel deficit.

Several initiatives are underway: the Ministry of Industry and Information Technology of China plans to introduce 10,000 humanoid robots into factories by the end of the year; investors have already allocated at least 100 billion yuan (equivalent to about 82 billion Brazilian reais) to the sector in 2025, surpassing the amount invested in the previous five years; furthermore, data collection centers are being established to train machines in domestic environments, stores, and assembly lines. Chinese companies intend to use robots in real contexts to accumulate millions of hours of learning experience.

Challenges and Technological Comparisons

Developing more sophisticated robots demands a vast amount of data. Unlike language models, these machines need to learn complex motor skills, such as handling delicate items or preventing cups from falling. Jacqueline Du, a Goldman Sachs analyst in Hong Kong, reported that leading companies have already achieved about 500,000 hours of collected data.

China has inaugurated 64 data collection centers and has 20 others under construction, replicating scenarios such as supermarkets, offices, factories, and residences. Gan Ruyi, head of algorithms at X Square Robot, emphasized that this is an area where the US does not have an advantage, highlighting that the Chinese capacity to organize workers and deploy machines on a large scale may be a distinctive factor.

In the United States, companies like Tesla, Figure AI, Apptronik, and Agility Robotics are also making progress with tests. Figure AI demonstrated the separation of nearly 60,000 packages in 50 hours of live transmission, achieving a speed close to that of a human worker. However, Chinese companies criticized this test for considering it overly controlled. Ai Wen, project director at Agibot, argued that the Figure demonstration still takes place in a laboratory environment, while Chinese robots are trained directly on production lines. Bloomberg concludes that the future of humanoids will depend on the ability to convert everyday experiences into learning for progressively more autonomous machines.