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    🇨🇳China·AI News·8 Jul 2026·via SCMP

    Physical AI ‘space race’: can Europe compete with China and the US in humanoid robotics?

    European firms are struggling to establish a strong presence in physical AI, the integration of artificial intelligence into robotics and machinery. This struggle comes as China and the United States have already taken a significant lead in the sector. Industry insiders are expressing concern that Europe faces a serious threat of further deindustrialization if it fails to build a competitive industry in this crucial technological area. The continent’s ability to innovate and compete in advanced robotics is seen as vital for its future economic stability and industrial relevance.

    Nexa's Summary

    This report highlights a critical competitive dynamic in the global physical AI and humanoid robotics market, with significant implications for Asia. While the article focuses on Europe's struggle against US and Chinese dominance, it implicitly underscores the advanced position of Asian players, particularly China, in this burgeoning field. China's early lead in integrating AI with robotics positions it not only as a formidable competitor but also as a potential partner or benchmark for other Asian nations looking to develop their own physical AI capabilities.

    The “space race” analogy suggests an intense, high-stakes competition where early movers gain substantial advantages. For the broader Asian tech ecosystem, this means continued pressure to innovate rapidly and strategically invest in AI and robotics research and development. The success of Chinese firms in this area could inspire similar national-level initiatives across Asia, fostering regional competition and collaboration in advanced manufacturing and automation. This trend will likely accelerate the adoption of AI-driven robotics in various industries, from manufacturing to logistics, across the continent.

    Original reporting by SCMPWe don't republish, read the full story →

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