Not Just Electric Cars! China's New Strategic Focus Revealed: Why Xiaopeng and Tesla Are Rushing into the 'Humanoid Robot' Race?

Every time you press the 'purchase' button while shopping online, the item you ordered is likely to start processing within minutes. Increasingly, the starting point of this process is a small silver ground robot. It will slide to the bottom of the shelf, lift the entire shelf, and transport it to the other end of the warehouse, placing it in front of the waiting staff. When BBC visited the Geek+ (極智嘉) factory in Hefei, a city in eastern China, they saw rows of such robots completing manufacturing and testing before being shipped to warehouses around the world. Some of the UK's largest retailers, including Tesco, Asda, and Next, are currently using the company's technology. Geek+ states that by automating these repetitive transportation tasks, retailers can increase picking speed, store more goods in places humans can't reach, and reduce errors. Autonomous mobile robots can be put into operation using only ground two-dimensional code markings and safety fences, unlike traditional warehouse automation, which relies on fixed conveyor systems and permanent infrastructure. Geek+ went public in Hong Kong last year, becoming one of the largest robotics company IPOs in 2025, and is now the world's largest supplier of autonomous mobile robots. The UK has long faced the problem of weak productivity growth. Economists point out that if companies want to improve efficiency, the broader adoption of robot technology will be an indispensable step. The Organisation for Economic Co-operation and Development (OECD) published a report in 2026 titled 'UK SME Technology Adoption,' stating that robots and other technologies will be key to boosting productivity. The OECD states that given the UK's deep manufacturing tradition, the country's adoption of robots is 'surprisingly low.' The report points out that while UK companies have widely adopted mature digital technologies, they are still lagging behind in robots and automation. This also presents business opportunities for companies like Geek+. The UK has one of Europe's largest e-commerce and logistics markets, but many warehouses are still in the early stages of automation. The UK has become Geek+'s largest market in Europe. Its UK partner, MotionTech, has currently deployed over 2,000 robots in 10 warehouses. MotionTech Customer Director Barry Pemberton said, 'Customers want solutions that can be deployed quickly.' 'They want to do more volume, more storage capacity, faster picking in smaller spaces... ultimately also reduce manpower.' He added, 'The UK seems to be facing a very serious labor shortage at the moment. These technologies are indeed very important for maintaining business growth and meeting market demand.' However, the Trades Union Congress (TUC), which represents nearly 6 million British workers, states that robot technology should be used to improve productivity and working conditions, not just to reduce labor costs. In response to the UK government's consultation on new AI and innovation strategies, the TUC urged the government to ensure that workers can participate in decision-making regarding automation and called on employers to invest in retraining. The TUC stated in the report, 'Having technology experts, workers, and unions work together can help guide UK research and innovation towards developments that meet workers' priority needs for automation... avoiding the automation model of cutting jobs but with low productivity.' China's progress in the robotics sector Under the promotion of Chinese President Xi Jinping's development of what he calls 'new quality productive forces,' the robotics industry has become a strategic priority for Beijing. As China's working-age population continues to decline, policymakers are increasingly viewing automation as a necessary means to boost productivity and maintain China's competitive advantage in manufacturing. Kyle Chan, a researcher at the Brookings Institution in the United States, stated, 'The development story of China's robotics industry is directly built on China's electric vehicle industry ecosystem.' He pointed out that batteries, electric motors, cameras, sensors, and semiconductors originally developed for electric vehicles are now increasingly being applied to China's robotics industry. He described this phenomenon as 'overlapping industrial ecosystems.' One of the representative companies of this cross-border integration is Xiaopeng, a Chinese electric vehicle manufacturer. Xiaopeng launched the humanoid robot 'Iron' last year. Company founder He Xiaopeng stated that he no longer sees Xiaopeng as a purely automotive manufacturer. 'We want Xiaopeng to become a high-tech company,' he told the BBC. 'In the future, any automotive company will transform into an automotive and robotics company.' Analysts believe that China's strategy to promote the robotics industry is likely to replicate the path of its successful entry into the global market for electric vehicles. Domestic companies are leveraging China's strong manufacturing capabilities, dense supply chain networks, and rapid product development capabilities to establish first-mover advantages. Kyle Chan stated, 'China is consciously building on these existing advantages.' 'And extending them to new areas, whether it's humanoid robots, industrial robots, or delivery robots.' US electric vehicle company Tesla (Tesla) is also pursuing a similar vision. Its humanoid robot 'Optimus' is one of the company's key development projects. CEO Musk has stated that Optimus may ultimately become a bigger business than the automotive business. However, China's ambition to dominate the global robotics industry was dealt a blow this week when the United States banned the import of new advanced foreign-made robots on national security grounds. The Chinese Embassy in the United States responded, stating that Beijing has always opposed the 'politicization' of trade issues by the United States and the imposition of sanctions based on 'groundless pretexts.' The next frontier Currently, the Chinese-made robots operating in UK warehouses are mainly aimed at solving cargo handling problems. Geek+ stated that the company's next goal is to fully automate all other processes within the warehouse. Geek+ communication director Yanyu Liu (phonetic) stated, 'We are working on developing... end-to-end unmanned warehouse solutions.' This means gradually realizing the automation of various stages, including picking, transportation, and ultimately packaging goods. In China, companies such as Zhiyuan Robot and Yushu Technology are investing billions in humanoid robots. However, compared to the current warehouse robots, the business model of humanoid robots is still not very clear. If wheeled robots can already transport goods at low cost, reliably, and efficiently, or if robots equipped with only robotic arms can complete other automation processes, then what problems can humanoid robots solve? Developers pointed out that factories, hospitals, and offices were originally designed according to human working methods, so humanoid robots may be able to work directly in these different environments in the future without redesigning the workplace to accommodate automated equipment. However, experts and developers unanimously believe that the current technology is not yet mature and lacks the high dexterity required for some repetitive tasks. MotionTech Customer Director Barry Pemberton (Barry Pemberton) stated, 'I don't think (humanoid robots) will change the technology or automation model that will be deployed in the future.' 'They will definitely be a complementary technology.' Currently, Chinese companies account for the vast majority of the global deployment of humanoid robots. However, it may still take several years for humanoid robots to truly become popular in warehouse environments. For the UK, under the dual pressure of productivity and labor shortages driving the demand for automation, local warehouses are gradually becoming an early experimental field for China's next major technology export product. Jaltson Akkanath Chummar added supplementary reporting. We used AI to assist in translating this article, which was originally in English. Before publication, BBC journalists checked the translated content.