China's embodied intelligence and robotics sectors are experiencing rapid growth as Chinese tech firms have won greater capital support and raised more funds in 2025 than a year earlier.
In the first five months of 2025, startups specializing in embodied intelligence secured more than 23 billion yuan (3.2 billion U.S. dollars), already exceeding the total investment recorded for the full year of 2024.
Embodied AI integrates artificial intelligence (AI) into physical bodies, such as robots, enabling them to perceive, learn, and dynamically interact with their environment as humans do. Relying on computation and logical reasoning, embodied AI can continuously learn, adapt, and complete tasks through perception, action, and environmental feedback, thus improving autonomy and practical application in real world.
For humanoid robots nowadays, although people want them to do tasks independently like humans, many still require an operator or pre-programmed instructions to function properly. Fully autonomous intelligence remains elusive.
Wang Xiaogang, chairman of ACE Robotics, emphasized the importance of intelligence in robot development in a recent interview with China Global Television Network (CGTN).
"Of course the hardware and the control are important to make the robots stable. But meanwhile, it's very important to have special intelligence. They can solve all kinds of problems independently. I think this is really the gap we have in robotics, and this is also what we're focused on," said Wang.
ACE Robotics doesn't build robot bodies, but builds their brains. The company's software enables robots, quadrupedal robotic dogs, and robotic arms to understand their surroundings and carry out tasks with real autonomy.
Although fully autonomous robots still face challenges, China's combination of hardware capabilities and AI innovation could help bring that future closer, according to Wang.
"We have a very good supply chain on the hardware side. And now I also think we have a lot of AI talents. In China, we have a good chance [of success]," he said.
From research labs to venture capital money, the race for embodied intelligence is well underway. Zhang Wenlang, managing director and chief macro analyst at CICC Research, believes this race will become a driving force of China's economy.
"With the emergence of DeepSeek in early 2025, market confidence in China's technological progress has been further reinforced. So, in fact, the stock market's tech sector has seen a notable rebound since the start of the year. Looking forward, we believe the new wave of technological revolution led by AI and robotics will keep driving up China's total factor productivity, and boosting its potential economic growth," said Zhang.
China eyes greater advances in embodied intelligence, robots
China eyes greater advances in embodied intelligence, robots
An industry observer said that 2026 is poised to be a "year of sequels and cultural stories" in global animation, following a strong 2025 where such films dominated box offices worldwide.
With heavyweights like Toy Story 5, Minions 3, and China's perennial favorite Boonie Bears set for release, along with culturally rooted productions such as The Three Kingdoms: War 1 Luoyang, the coming months are expected to draw large audiences and reinforce animation's central role in cinema.
This optimism is built on a solid foundation from the previous year.
Looking back at China's film market in 2025, animated features emerged as a powerful driving force. Four of the year's top 10 highest-grossing films were animations, three of which were domestic productions.
Total animation revenue exceeded 25 billion yuan (around 3.58 billion U.S. dollars), capturing nearly 50 percent of the annual box office. As the new year unfolds, the animation sector continues to shine with promising highlights.
A key trend driving this momentum is the surge of sequels from major franchises.
"One notable trend is the abundance of sequels to classic animated films, particularly from Hollywood. Several iconic series are releasing new installments, making 2026 a year of animated sequels. Given their strong IP foundation, these sequels are expected to attract more audiences' attention and achieve solid box office results," said Hu Jianli, secretary general of the Chinese Film Critics Society.
Alongside these international sequels, domestic animation IPs are also deepening their influence and expanding their reach. The annual Boonie Bears series will welcome its latest installment, while the popular TV series The Immortal Ascension is set for its big-screen debut.
"It's fair to say that the Boonie Bears series has maintained the most consistent quality among domestic animated film franchises over the years. Its expansion from television to movies, merchandise, and theme parks represents a fully developed industrial chain, greatly strengthening the IP's presence in the public consciousness. As for The Immortal Ascension, it's the first time that the animation IP is adapted for the big screen, which naturally generates exceptional attention—especially following the successful live-action web series last year. If this first animated film adaptation succeeds, it has the potential to become a major film IP in its own right," said Hu.
Beyond the reliance on established franchises, another significant creative trend is the growing number of animated films drawing inspiration from China's rich classical literature and historical epics. This approach aims to connect with audiences through deeply rooted cultural narratives.
A leading example is a prominent Chinese animation studio Light Chaser Animation's upcoming "The Three Kingdoms: War 1 Luoyang", which dramatizes the early power struggles from the famed historical period.
"We are seeing a clear increase in animated films adapted from classic Chinese novels and myths. Light Chaser Animation Studios' 'New Culture Series' has performed exceptionally well in our animated film market—for example, 30,000 Miles from Changan earned over 1.8 billion yuan (around 257.98 million U.S. dollars) at the box office. This series has truly succeeded in creatively transforming and innovatively developing China's outstanding traditional culture for the big screen, while also resonating emotionally with today's young audiences through its storytelling and character adaptations," said Hu.
Beyond sequels and adaptations rooted in traditional culture, original animated films are also carving out their space with unique concepts and distinctive styles, showcasing further creative possibilities.
Titles such as Arco, a 2025 animated science-fantasy film, and Pixar's Hoppers exemplify this trend of innovation.
"I believe animated films will remain a major force in the global box office in 2026. The worldwide top-grossing film of 2024 was Inside Out 2, and in 2025 it was China's Ne Zha 2. So I'm confident that animated films will once again rank among the highest-grossing releases globally this year," Hu said.
Animated films set to dominate 2026 global box office with strong lineup
