The humanoid arms race: can the U.S. and China actually coexist?

try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Trump warns Iran as new strikes follow Khamenei’s death Global gas markets face their biggest shock since 2022 on Iran conflict Strategists see only temporary market impact from Iran strikes Bitcoin prices fall below $64,000 after U.S./Israel attack on Iran (South Africa Philippines Nigeria) The humanoid arms race: can the U.S. and China actually coexist? By Simon Mugo Author Simon Mugo Economy Published 03/01/2026, 05:30 AM Updated 03/01/2026, 05:35 AM The humanoid arms race: can the U.S. and China actually coexist? 0 TSLA -1.49% 0425 3.64% Investing.com -- The global race for humanoid robots is getting crowded. For years, the narrative was simple: the U.S. designs the "brains" while China produces the hardware. But according to a Morgan Stanley report, that clean divide is falling apart. China is no longer just a workshop; it’s a powerhouse that shipped over 12,000 humanoids in 2025 alone. Get premium news and insight, AI stock picks, and deep research tools by upgrading to InvestingPro Now, everyone is looking at the upcoming Trump-Xi meeting to see if these two giants will shake hands or keep attacking each other over supply chains. Can a U.S. robot actually function without Chinese parts? Right now, the answer is a flat no. Chinese suppliers like Leaderdrive and Minth Group Ltd (HK:0425) make the high-precision actuator assemblies that let these machines move. To dodge geopolitical landmines, they’re now forming joint ventures to build factories on U.S. soil. It’s a classic strategy that lets the U.S. internalize manufacturing secrets while China keeps its grip on the parts market. OpenAI and the hunt for domestic steel In late January, OpenAI threw a massive wrench into the gears. They put out an RFP specifically hunting for U.S.-based suppliers for bearings, motors, and actuators. It’s a clear signal that the AI darlings are tired of being tethered to Shenzhen. Firms such as OpenAI want to de-risk the ...