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China Could Dominate the Physical AI Future
China is rapidly advancing in physical AI and robotics, dominating supply chains for key components such as lidar sensors, harmonic reducers, and robot controllers while deploying humanoid robots and drone technology at scale. Chinese companies showcased AI-enabled hardware at major events including the Spring Festival Gala and CES in Las Vegas, signaling a strategic lead over the U.S. in embodied intelligence. China accounted for over 80% of global humanoid robot installations in 2025, with man