China rolls out humanoid robots at triple the U.S. output, Nvidia CEO Jensen Huang acknowledges the world will depend on Asia’s giant

China’s push into humanoid robotics is intensifying, with major technology and robotics supply-chain players increasingly tied to Chinese component ecosystems. In March, Nvidia chief executive Jensen Huang unveiled a humanoid robot version of Olaf from Disney’s “Frozen,” describing it as a fusion of prominent U.S. tech names. The project also highlights China’s growing influence in the robotics supply chain: Disney research indicates the robot could not walk smoothly or sway without core components supplied by Unitree, the Chinese robotics company that currently provides motion technology for the neck and legs of the character.

China consolidates the humanoid-robot supply chain

Chinese firms are racing to consolidate their “empire” across the humanoid-robot supply chain, a sector that both Jensen Huang and Elon Musk have described as a next major tech trend. While the United States retains an edge in advanced AI chips, China is tightening control over parts of the ecosystem needed to produce humanoid machines.

In a March podcast, Huang said China is “winning the global race for core technologies and components,” including semiconductors, propulsion motors, rare-earth materials, and high-performance magnets, adding that the humanoid-robot industry “will have to rely heavily on these supply chains.”

Rivalry with the United States and policy concerns

According to The Wall Street Journal, Tesla is building a team in China to work with suppliers for its Optimus project, with domestic sources saying Tesla staff have repeatedly visited Chinese manufacturers of sensors, motors, and other components.

U.S. policymakers have expressed unease about China’s growing influence in the robot supply chain, which they say could be weaponized or used for sensitive applications. In February, a bipartisan group in the U.S. House proposed emergency legislation to establish a committee to review competitive dynamics and supply-chain vulnerability risks.

Beijing has also signaled the strategic importance of the sector. China added “embodied AI” to a list of six future industries expected to drive economic growth over the next five years. In 2023, it launched a strategy to build a domestic, “unassailable” robot supply chain by 2027, aiming to reduce dependence on Japan or Germany. By February, Beijing introduced the first national standards for robots, covering technology from core components to shells.

Production scale and cost pressure

Chinese robot firms are gaining ground with a home-field advantage and a broader ecosystem of components. Morgan Stanley estimates that last year Chinese firms released as many as 28 humanoid-robot models, nearly three times the output of their American counterparts.

Supported by government subsidies and public enthusiasm driven by TV shows, Chinese firms are attracting large-scale investment. Unitree, a key player in Chinese parts and complete-robot ecosystems, is aiming to raise about $610 million in an IPO in Shanghai this year. The company claims to have shipped over 5,500 humanoid robots in 2025.

Unitree says in its IPO filing that it can “negotiate from a position of scale,” giving it a “dominant cost advantage.” Morgan Stanley estimates China’s supply chain could reduce robot-production costs to about one-third. TrendForce estimates that actuators and motion-control components—already roughly 55% of a robot’s value—are largely controlled by China.

Tesla’s wager on control—and the risk of renewed dependency

Despite these headwinds, the United States remains strong in Nvidia chips and advanced AI algorithms, prompting Chinese suppliers to seek deeper involvement as component providers. Chinese component booths are described as dominating global robot-expo venues, with companies such as UBTech and Unitree seeking international distributors.

At a White House event, First Lady Melania Trump toured with Figure 03, a humanoid robot from Silicon Valley. While the robot stated it was “manufactured in the United States,” HSBC analysts said Figure AI relied on Chinese suppliers for joints, sensors, and motors.

To avoid supply-chain constraints, Tesla is pushing ahead with in-house design for many components to gain “absolute control.” The article notes that this approach could still steer Musk back toward Chinese suppliers, since they are described as able to provide “made-to-measure” parts at very low prices.

Dependency on Chinese technology is also highlighted by Optimus design adjustments. The article says Tesla has been forced to reduce rare-earth magnets in Optimus as Beijing tightens export controls. Musk remains committed to multi-million-unit Optimus production by late 2026, and the article says Tesla has placed orders this year for significant quantities of Chinese-sourced components, including sensors, motors, and other high-end parts.

To navigate U.S. tariffs, some Chinese suppliers have reportedly shifted production to Thailand and other parts of Southeast Asia to meet demand. While some Chinese components are perceived as less durable than Japanese alternatives, the article says the durability gap is closing quickly due to low prices.