China is advancing fast in physical AI — not only with humanoid robots, but by connecting AI with factories, transport, farms, hospitals, and city infrastructure. Its advantage is not just AI models. It is manufacturing scale, deployment speed, and the ability to learn from real-world operations. China accounted for 54% of global industrial robot installations in 2024 and operates more than two million industrial robots. At the same time, the U.S. has restricted new Chinese h