Global Robotics Race Intensifies as US and China Clash Over AI Dominance

The robotics and automation industry is undergoing a transformative phase as advancements in artificial intelligence (AI), vision language models (VLMs), and edge computing converge to redefine industrial capabilities. While global markets face headwinds, including geopolitical tensions and supply chain disruptions, key players are leveraging cutting-edge technologies to drive innovation and scalability.

NVIDIA, a leader in AI hardware and software, is at the forefront of this shift. The company's Jetson AGX Thor module powers real-time perception and autonomous decision-making in robotics, enabling applications from logistics to manufacturing, according to a MarketScreener report. Collaborations with firms like Amazon Robotics and Skild AI highlight the integration of NVIDIA's Omniverse and Isaac Lab platforms, which accelerate the development of multi-arm manipulators and general-purpose robotics models, the MarketScreener report notes. Meanwhile, Theta Edge Computing's focus on low-latency processing is critical for deploying AI in real-world environments, particularly in industrial automation and autonomous systems.

China's robotics sector is surging, with startups like Deep Robotics (branded as "Little Dragon") expanding rapidly. The company recently launched the DR02, a 1.75-meter humanoid robot designed for harsh conditions, and is consolidating partnerships in Asia-Pacific and the Middle East to accelerate global adoption, according to a Yahoo Finance article. Analysts note that China's dominance in supply chains and cost-efficient component manufacturing gives it an edge in the race for humanoid robotics, a sector both the U.S. and China are prioritizing amid trade tensions, the article adds. However, U.S. firms are not backing down. General Dynamics' recent Q3 earnings, driven by defense and aerospace contracts, underscore the sector's resilience, though supply chain bottlenecks remain a risk, according to a Simply Wall St note.

International cooperation is emerging as a key theme. Chinese Premier Li Qiang recently called for joint scientific research with Japan, South Korea, and ASEAN nations in AI, robotics, and biomedicine, emphasizing dialogue to address industrial challenges, as reported in a US News report. Similarly, the European robotics industry, led by Germany's VDMA Robotics + Automation, faces a 10% revenue drop in 2025 due to geopolitical uncertainties and Asian competition. The VDMA has proposed a "Robotics Action Plan for Europe," urging increased venture capital, innovation roadmaps, and policy support to restore competitiveness in a BusinessWire release.

The Robotics as a Service (RaaS) market is projected to grow at a 16.89% CAGR, reaching $6.22 billion by 2032, driven by cloud-native fleet management and AI-driven predictive maintenance, according to a Credence Research forecast. Meanwhile, NVIDIA's struggles in China—where its market share plummeted from 95% to 0% due to export bans—highlight the geopolitical risks in the semiconductor war. Despite these challenges, Beijing's push for domestic AI chip development, exemplified by Huawei's roadmap and Cambricon's growth, signals a long-term shift in global supply chains, as reported by All About Industries.

As the industry navigates these dynamics, the integration of VLMs and edge computing will likely determine the next wave of innovation. Companies that balance technological agility with strategic partnerships—whether in China's rapidly scaling robotics ecosystem or Europe's policy-driven revival—will shape the future of automation.