Shenzhen allocating CNY4.5 billion to finance initiatives in AI and robotics

Shenzhen in Guangdong province plans to launch supportive policies, including CNY4.5 billion in financial incentives, to drive the city’s artificial intelligence (AI) and robotics sectors, with humanoid robots emerging as one of the key sectors receiving attention. Shenzhen, home to some of the world’s largest tech companies – including Huawei Technologies, Tencent Holdings and BYD Auto – is positioning itself as a national hub for these high-tech industries. Lin Yi, Director of Shenzhen’s AI Industry Department, said the city plans to launch a special policy for humanoid robots designed to promote breakthroughs in key technologies, databases and large-scale manufacturing. The CNY4.5 billion will be allocated to the initiative this year, with company applications set to open in March. The policy package will offer subsidies to businesses, including up to 60% support – capped at CNY10 million – including for computing power costs.

The government will also offer model and database vouchers to further incentivize growth in these emerging sectors. The city also plans to integrate AI and robotics into its major science and technology projects to foster partnerships between industry, academia and research institutions, Lin said. Shenzhen’s move follows similar plans nationwide, where regional governments have included embodied intelligence and humanoid robots as key economic strategies for 2025. This year’s government work reports from over a dozen provinces and cities – including Beijing, Chongqing, Shandong province and Anhui province – emphasize the role of these technologies in advancing industrial upgrades and driving economic growth. Hefei in Anhui plans to commercialize embodied intelligence products and attract over 100 companies in the AI and algorithm sectors. Shandong plans to accelerate the development of a full industry chain encompassing embodied intelligence.

Major Chinese tech companies are making their own moves in the humanoid robot sector. At least 18 automakers have joined the race, spurred by government incentives and technological advancements in AI. Xiaomi, Xpeng and Nio are among the latest firms to announce their entry into the humanoid robot market, while Tesla and BMW have introduced their first humanoid robot “employees” on assembly lines. Xu Xiaolan, former Vice Minister of Industry and Information Technology, said that humanoid robots are expected to become another “disruptive product” after computers, smartphones and new energy vehicles (NEVs).

China’s humanoid robot market is rapidly growing and recorded USD2.9 billion in sales revenue last year, which is projected to skyrocket to around USD46.31 billion by 2031, at a staggering compound annual growth rate of 48.6%. Rick Xiong, General Manager of the Beijing Embodied Intelligence Robotics Innovation Center, said that leading Western countries have deep-pocketed industry giants dominating the robot landscape, whereas China is characterized by a proliferation of small to medium-sized enterprises (SMEs) striving to navigate the competitive terrain of humanoid robots, the China Daily reports.

Shenzhen, often referred to as China's Silicon Valley, announced its 2025 economic growth target of 5.5%. Last year, Shenzhen set its GDP growth goal at 5.5% and later reported 5.8% growth, placing it among the top in terms of growth rates among major cities in China.