China’s Race to Lead in Embodied AI, Expert Warns "World Models" Needed for Real Progress

Embodied artificial intelligence represents a crucial new frontier in global technological competition, a field Beijing has identified as key for future growth. Embodied AI is artificial intelligence integrated into physical robots or systems, allowing them to learn and act in the real world through direct interaction, combining perception, reasoning, and action to complete tasks like navigation or object manipulation, contrasting with traditional AI that mainly processes digital data.

China’s Race to Lead in Embodied AI

According to SCMP, China is aggressively moving to position itself as a global leader in this space, recognising embodied intelligence alongside other critical areas such as quantum technology, bio-manufacturing, hydrogen and nuclear fusion energy, brain-computer interfaces, and sixth-generation mobile communications. These technologies are listed in recommendations for China’s 15th five-year plan as potential new engines of growth. This national commitment has led local governments across the country to name embodied AI and robotics as priority areas within their own regional five-year planning documents. Furthermore, specific regions such as Guangxi have issued targeted policies designed to support industrial development in this sector.

Despite the intense governmental focus and rapid industrial expansion, key foundational elements for embodied AI are still incomplete, according to leading experts. Andrew Yao Chi-chih, a world-renowned Chinese computer scientist, stressed the critical need for interpretable “world models” rather than relying solely on simulation. Yao, who is a 2000 Turing Award winner and the dean of Tsinghua University’s College of AI, explained that core capabilities like reasoning, planning, and control should ultimately be integrated within a unified framework. He noted that robots must evolve beyond performing only isolated tasks to achieving complex whole-body coordination. The scarcity of training data remains a substantial challenge, necessitating the exploration of scalable new approaches to data collection.

Yao strongly advocated for unifying industry standardisation to prevent fragmented development. Speaking at the government-led Global Developer Pioneers Summit and the International Embodied Intelligence Skills Competition, he called for the rapid establishment of open industry benchmarks and comprehensive safety standards. He warned against the current approach where industry players are essentially “each fighting their own battle”. This summit, held in Shanghai, showcased the practical applications of different robot models in real-world tasks across various scenarios. Competitions included demonstrations in areas such as industrial assembly, home services, restaurant services, flower arranging, healthcare, and elderly care.

The technological competition to become a national hub is clearly unfolding at the municipal level across China. Shanghai, for instance, established a local industry alliance during the summit. Pudong district rolled out a substantial package of support measures designed to foster growth. This includes provisions for free access to crucial computing resources, housing for talented professionals, and funding for start-up ventures. Concurrently, Guangzhou hosted a Greater Bay Area AI and robotics industry conference. A report released at that event indicated that Guangdong’s core AI industry had reached 220 billion yuan (US$31.2 billion) in 2024, supported by more than 3,700 AI and robotics companies operating as of November.

The commercial promise of embodied intelligence appears strong and imminent. Citic Securities suggested in a recent research note that 2025 could mark a tipping point for large-scale commercialisation, citing evidence of billion-yuan-scale orders already secured by leading robot makers. This fast growing national ecosystem now comprises more than 150 humanoid robot companies, a number that continues to climb. However, Li Chao, a spokesperson for the National Development and Reform Commission, issued a caution against the potential risk of highly similar products entering the market simultaneously, which could unfortunately squeeze the necessary room for essential research and development efforts. China’s unified strategy successfully merges ambitious technological goals with significant regional investment while experts push for unified foundational standards necessary to maintain high growth.