CNBC's The China Connection newsletter: China-made humanoid robots set sights on Middle East and U.S. markets
This week's CNBC's The China Connection newsletter brings you insights into the rapidly evolving world of China's tech industry, specifically focusing on the rise of humanoid robots. Subscribe here: https://www.cnbc.com/lander?id=chinaconnection-newsletter
The Rise of Chinese Humanoid Robots
Chinese humanoid robots are poised to make a significant impact in the U.S., potentially even before Elon Musk's Optimus machines are available. This is the story of LimX Dynamics, a startup that has rapidly grown from a humble facility to a modern office tower in Shenzhen, China's tech hub.
In an exclusive interview, founder Will Zhang revealed their plans to explore business collaborations in the U.S. Just days earlier, LimX showcased its humanoid robot at the Consumer Electronics Show (CES) in Las Vegas. This global expansion strategy involves partnering with local investors and businesses.
The Middle East is the first stop on their roadmap. LimX has secured its first foreign backer from the region, and plans to start shipping humanoids there this year. While Zhang couldn't disclose specific details due to ongoing funding, the startup's valuation is expected to skyrocket.
LimX has raised $69.31 million as of July 2025, with investors including Alibaba, JD.com, and Lenovo. Zhang is focused on local partnerships and plans to engage with more international investors in the coming months. Beyond the Middle East, Zhang sees potential in Europe's large but fragmented market.
LimX Dynamics released its full-sized humanoid robot, Oli, in the summer of 2025. The base model costs 158,000 yuan ($22,660), featuring LimX-made applications. A developer-friendly version costs nearly twice as much at 290,000 yuan.
Competing with Elon Musk
LimX isn't alone in its ambitions. Several other Chinese humanoid robot companies, like Unitree, showcased their robots at CES. This trend reflects the growing competition for Elon Musk's humanoid robot plans, not just from U.S. rivals like Figure AI, but also from Chinese companies expanding globally.
According to research firm Omdia, about 13,000 humanoids were shipped worldwide last year. Chinese companies dominated the top five by shipments, with Figure AI ranking seventh and Tesla ninth. Tesla has shipped Optimus units to business clients but not yet to the public.
Morgan Stanley recently doubled its forecast for China humanoid robot sales this year to 28,000 units, up from 14,000. This forecast only includes external sales, with businesses expected to be the key driver. By 2050, the firm predicts China's humanoid market could reach annual sales of 54 million units.
Musk stated at Davos that Optimus won't start sales to the public until the end of 2027.
Global Ambitions and Technological Innovation
LimX's goal is to be a global leader in underlying technology, not just another Chinese company commercializing existing ideas. Zhang believes China can lead in tech innovation, challenging the notion that the U.S. must always be at the forefront.
Before founding LimX in 2022, Zhang was a tenured professor in electrical and computer engineering at Ohio State University. His focus this year is on improving voice commands using agentic artificial intelligence, eliminating the need for remote controls in robot demos.
LimX recently announced an agentic AI "operating system" called COSA, designed to enable robots to adjust body motion in real-time, like handling tennis balls.
The Future of Humanoid Robots
LimX's three-year plan includes delivering several thousand humanoid robots to the Middle East for research and development, and building case studies on their service capabilities. Plans for the U.S. are still in the works.
Zhang believes rapid industry advances mean humanoid robots could be working alongside humans within five to ten years. If successful, these robots will be deployed globally, not just in China.
CNBC's Top TV Picks
- Benjamin Hung, Chairman of Hong Kong's Financial Services Development Council, discussed investor and business risk reassessment in U.S. assets, favoring rebalancing towards Asia, Greater China, gold, and alternative assets.
- Hong Kong Financial Secretary Paul Chan highlighted Hong Kong's growing global prominence, attracting companies from mainland China, Southeast Asia, and the Middle East.
- Kevin Sneader, President of APAC ex-Japan at Goldman Sachs, discussed investor appetite for AI in Asian markets, noting nuances for standout countries like China and South Korea.
Quote of the Week
"What has President Trump achieved? He's shown the world that China is a viable partner on the trade side, somewhat more stable than the U.S. Trump has probably advantaged China in the long run in hard and soft power." - Ed Price, Non-Resident Senior Visiting Fellow, New York University
Market Update
Chinese and Hong Kong stocks gained in afternoon trading on Wednesday.
- Mainland China's CSI 300 index rose 0.49%.
- Hong Kong's Hang Seng Index climbed 2.36%, leading major Asian benchmarks.
- China's 10-year government bond yield rose to 1.824%.
- Offshore yuan last traded at 6.938 per dollar.
Upcoming Events
- Jan. 28 - 31: British Prime Minister Keir Starmer's visit to China with UK business representatives.
- Jan. 31: China's official manufacturing and services PMI for January.
- Feb. 1 - 7: State visit to China by the President of Uruguay, Yamandu Orsi.
- Feb. 2: Manufacturing PMI for January by RatingDog.
- Feb. 4: Services PMI for January by RatingDog.
