China's next AI trade is robots: Toss Securities

China is rapidly turning humanoid robots into its next artificial intelligence growth story, utilizing the same manufacturing playbook that previously allowed it to dominate the smartphone and electric vehicle sectors, according to a report by Toss Securities. In the report, titled "Back from Shenzhen" and released on Wednesday, the brokerage’s research center outlined how robotics is emerging as the next major growth driver for the Chinese artificial intelligence industry.

The findings follow a recent visit by the research team to the southern Chinese technology hub of Shenzhen. Lee Young-gon, the head of the research center, noted that robotics is currently drawing the most attention as the next stage of the artificial intelligence industry, emphasizing that Chinese companies are rapidly strengthening their position on the back of their extensive manufacturing capabilities, News.Az reports, citing Korea Herald.

The report argues that the primary competitive edge for China in the humanoid robot sector lies less in frontier innovation and more in its distinct ability to commercialize technologies at scale. Rather than focusing heavily on technological showcases, Chinese firms are concentrating their efforts on lowering production costs, expanding overall manufacturing capacity, and identifying real-world applications.

Toss Securities compared this approach directly to China's historical rise in the smartphone and electric vehicle markets, where local companies successfully leveraged manufacturing efficiency and cost advantages to capture global market share. Furthermore, as the world's largest manufacturing base, China benefits from strong domestic demand for automation, which provides a natural internal market for widespread robotics adoption.

The collaborative robot maker Dobot serves as a prime example of a company benefiting from China's manufacturing ecosystem. The report also highlighted the growing localization of critical components, such as reducers and actuators, which is supported by a robust domestic supply chain that is actively helping to lower production costs. During the visit to Shenzhen, the research team observed early commercialization efforts in practice, including a humanoid robot selling popcorn at a shopping mall, highlighting how these machines are beginning to move beyond mere demonstrations and into practical service applications.

While the report foresees significant long-term potential in robotics, it noted that China's broader artificial intelligence industry remains in the early stages of investment. Companies from the United States, South Korea, and Taiwan continue to dominate key artificial intelligence semiconductor segments, such as graphics processing units and high-bandwidth memory.

However, Chinese firms are progressively strengthening their position in other vital parts of the supply chain, including printed circuit boards and copper-clad laminates. The report added that export controls imposed by the United States have accelerated China's internal push to localize critical technologies and reduce its reliance on foreign suppliers. Ultimately, Lee stated that competition in artificial intelligence will be decided not by who builds the best model, but by who applies artificial intelligence across the widest range of industries, concluding that China is building that specific advantage through its manufacturing base, data resources, and platform ecosystem.

News.Az 

By Leyla Şirinova