China's next AI trade is robots: Toss
Toss Securities reports China is positioning humanoid robots as its next major AI growth sector, leveraging manufacturing scale and cost advantages similar to its smartphone and EV strategies. The brokerage highlights early commercialization efforts, such as humanoid robots in retail, while noting US export controls are accelerating China’s push to localize critical supply chain components like reducers and actuators.
Toss Securities has identified China’s robotics sector as the next major growth driver in its AI industry, mirroring the country’s successful playbook in smartphones and electric vehicles. In a report titled *Back from Shenzhen*, released Wednesday, the brokerage’s research center emphasized China’s ability to commercialize robotics at scale rather than focus on frontier innovation. The strategy prioritizes cost reduction, expanded manufacturing capacity, and real-world applications, with domestic demand for automation providing a strong market foundation. The report cites collaborative robot maker Dobot as a prime example of a company benefiting from China’s manufacturing ecosystem. It also notes growing localization of key components like reducers and actuators, supported by a robust domestic supply chain that lowers production costs. During a visit to Shenzhen, the research team observed early commercialization, including a humanoid robot selling popcorn in a shopping mall, signaling a shift from demonstrations to practical service roles. While China’s broader AI industry remains in early investment stages, the report acknowledges that US, South Korean, and Taiwanese firms still dominate critical segments like GPUs and high-bandwidth memory. However, Chinese companies are strengthening their position in areas such as printed circuit boards and copper-clad laminates. US export controls have further accelerated China’s push to localize critical technologies and reduce foreign supplier dependence. Lee Young-gon, head of Toss Securities’ research center, stated that AI competition will hinge on industry-wide application rather than model superiority. China is building an advantage through its manufacturing base, data resources, and platform ecosystem, positioning itself to integrate robotics across diverse sectors. The report concludes that China’s robotics push is not just about technological showcases but about leveraging existing strengths to capture global market share. Early commercial deployments suggest a transition from lab demonstrations to real-world utility, with long-term potential tied to domestic demand and supply chain localization.
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