Opinion | How the US ceded the robotics economy to China
South China Morning Post
by Jianlu BiMarch 3, 2026
AI-Generated Deep Dive Summary
The US has largely overlooked the critical importance of mastering physical infrastructure in the race for AI and robotics dominance, ceding ground to China. The Chinese Spring Festival Gala highlighted the nation's advanced humanoid robots performing complex martial arts and acrobatics, showcasing its "embodied AI" capabilities. This achievement stems from China's trifecta of advantages: cutting-edge AI technology, an unparalleled hardware supply chain, and unwavering national resolve. Even Elon Musk has acknowledged that his biggest competitors are now Chinese.
The rapid evolution of these robots—from simple movements in 2025 to advanced stunts in 2026—demonstrates a trajectory the West is no longer following. While the US has focused on optimizing its economy for financial engineering and digital tools like advertising algorithms, China has prioritized building the physical foundation necessary for AI advancements. This includes investing heavily in electricity, rare earth materials, steel production, and a robust power grid that can handle immense demands.
The statistics are striking: since 2021, China's power grid capacity has grown by an amount exceeding the entire US grid. This physical infrastructure is essential for "embodied AI," where the body of AI systems requires not just chips but also significant energy and material resources. The US, which once dominated robotics research, has failed to recognize this shift in focus from finance to physical reality.
This competition underscores why understanding global tech dynamics matters—China's comprehensive approach to integrating AI with physical systems could redefine future economic and military power. The world is witnessing a paradigm shift where mastery of both digital and physical realms will determine leadership in the 21st century.
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Originally published on South China Morning Post on 3/3/2026