Without China, American robots can't move.

【By W. Kaiwen, Observer Network】

The Wall Street Journal reported on April 2 that both China and the United States view humanoid robots as strategic industries, and that China’s rapid development of humanoid robots has made it difficult for American robotics to avoid “Made in China.”

In March this year, Nvidia CEO Jensen Huang brought an unexpected guest to Nvidia’s annual GTC conference—a robot version of Olaf, the snowman from the movie Frozen. The robot brings together three of the United States’ best-known companies: Disney provides the character, while Nvidia and Google provide the artificial intelligence technology.

But the Wall Street Journal has noted that this robot is also a showcase of China’s strength. According to a paper from Disney, if it were not for the components provided by Chinese robot manufacturer UBTech (Unitree) to drive the motion of its neck and legs, “Olaf” would not be able to walk or swing its body.

Chinese companies are stepping up efforts to strengthen their position in the humanoid-robot supply chain. The report says that although the United States has the most advanced chips and other technologies needed for the “brains” of robots, China has an unmatched advantage in the manufacturing ecosystem for the “body” of humanoid robots.

In a podcast episode last month, Jensen Huang said candidly that China “has the best in the world in the foundational segments of the robot industries, including microelectronics, motors, rare earths, and magnets,” and that “the world robot industry will have to rely on it to a large extent.”

March 16, San Jose, United States: Nvidia CEO Jensen Huang (right) shared the stage at the GTC Global Conference with Olaf, the robot snowman from Frozen. IC Photo

According to people familiar with the matter, Tesla is building a team in China that will work with suppliers of its Optimus humanoid robot. It is understood that Tesla employees have already visited Chinese manufacturers of sensors, motors, and other components. This move is to prepare for mass production of Optimus. Musk predicted last November that Optimus would become a “product more influential than any other.”

Thanks to a well-stocked supply of domestic precision components, Chinese humanoid-robot full-system manufacturers can bring products to market faster. According to Morgan Stanley, last year Chinese companies launched 28 humanoid robots—nearly three times the number of U.S. companies.

Government support, robot sports competitions, and TV performances have given humanoid robots extremely high public attention in China, not only creating the first batch of users but also helping Chinese firms win over capital.

UBTech (Unitree) is one of the leading manufacturers of complete robot systems and components. The company plans to conduct its first initial public offering (IPO) in Shanghai this year, seeking to raise 4.202 billion yuan. UBTech said that in 2025 it delivered more than 5,500 humanoid robots for uses such as research, education, and public performances—far exceeding U.S. competitors.

In its IPO filing, UBTech said, “Scaled mass production further strengthens the company’s pricing power with upstream suppliers and forms a cost advantage.”

Morgan Stanley estimates that China’s supply chain can reduce the manufacturing cost of humanoid robots by as much as two-thirds. According to data from high-tech industry research firm TrendForce, components that control humanoid robot motion—including dedicated motors and gears—account for about 55% of the robot’s total cost.

“The advantage of China’s humanoid-robot startups is that they can leverage their extensive supply chain,” said Keiichi Onishi, chairman of Yamaha Motor Ventures, a Silicon Valley-based investment arm of Yamaha Motor, last year, adding that “China has a market where various applications can be tested, and suppliers are willing to take on risk.”

However, the report points out that U.S. robot manufacturers still have an advantage in acquiring Nvidia chips and other U.S. artificial intelligence technologies, which is one reason Chinese companies are actively seeking to become suppliers of their components.

June 22, 2025: Hangzhou, Zhejiang. Viewers watch Tesla’s Optimus robot at a robot expo in Hangzhou. Oriental IC

From Singapore and Tokyo to Riyadh and Las Vegas, over the past year, Chinese component manufacturers have become regulars at industry robot trade shows. Companies such as UBTech and Unitree have also hired local distributors to expand overseas markets.

The report also noted that this March, at an education summit held at the White House, U.S. First Lady Melania walked side by side with the latest humanoid robot developed by Silicon Valley company Figure AI.

“I am Figure 03, a humanoid robot made in the United States,” the robot told the audience. However, HSBC Bank analysts and people familiar with the matter said that in early models, Figure AI used components from Chinese suppliers—robot joints, sensors, and motors.

It is reported that some humanoid-robot components are modified from industrial robots, automobiles, and consumer electronics, but Tesla is trying to design and develop components itself. This would give it more control over related technologies and enable optimization of compatibility between software and hardware. But this also means relying on Chinese suppliers that can provide customized components at favorable prices.

Tesla’s reliance on China became evident last year. People familiar with Tesla’s supply chain said that at the time, China tightened export restrictions, and Tesla was therefore forced to reduce its use of rare earth magnets in Optimus robots.

These people said that this year, Tesla has been in discussions with some Chinese suppliers to order components sufficient to produce thousands of Optimus units. These components include sensors, coreless motors that provide power to enable precise high-speed motion, and reducers used to simulate human joint movements.

The report says that while Chinese suppliers are rapidly improving the quality of their products, they also maintain a clear pricing advantage.

A Chinese manufacturer producing lead screws is stepping up efforts to meet the higher service-life standards Tesla requires. Lead screws are key components in robot motion. The company is already supplying to several Chinese robot manufacturers, a market manager said. Tesla has proposed stricter requirements, including reducing design dimensions, increasing durability by one-quarter, while keeping the price still 25% lower than European products.

“Once we close the gap, our cost structure will become an unmatched advantage,” the manager said.

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