China's robotics sector has attracted $5.6 billion in venture investment through mid-May 2026, matching the total for all of 2021, the previous peak. This surge reflects a strategic shift toward embodied AI—artificial intelligence with physical bodies that interact with the real world—replacing pre-programmed hardware as the investment priority. China now accounts for 43% of global robotics venture investment.

Several robotics startups have secured massive funding rounds. TARS Robotics, a 1-year-old humanoid robotics company, raised a $513 million seed round led by Hillhouse Capital and HSG, valuing it at $1.9 billion. X Square secured $140 million in January and another $293 million in March, while Spirit AI raised $435 million total in its Series A funding.

The sector is experiencing notable exit activity, with IPOs and acquisitions gaining momentum. Unitree Robotics filed for an IPO targeting a valuation of $3 billion to $7 billion, while Robotphoenix listed on HKEX and saw its shares surge nearly 80% on its first trading day. AgiBot acquired Swancor Advanced Materials for $290 million, marking a historic first for China's embodied AI sector.