CNBC's The China Connection newsletter: China-made humanoid robots set sights on Middle East and U.S. markets

Chinese humanoid robots are gearing up to make their debut in the U.S. market, potentially ahead of Tesla's much-anticipated Optimus machines. Over the past two years, during visits to Shenzhen, often dubbed China's 'Silicon Valley,' I observed the evolution of LimX Dynamics, a promising startup that has transitioned from a modest facility to a sleek office tower, reflecting its ambitious vision. In an exclusive interview, founder Will Zhang shared that the company is actively seeking partnerships in the U.S. Following a recent showcase of their humanoid robot at the Consumer Electronics Show in Las Vegas, LimX is set to expand its footprint globally, starting with the Middle East. Zhang confirmed that the startup has secured its first foreign investor from the region and plans to commence shipments of humanoid robots this year. While details about the new investors and the funding amount remain under wraps due to an ongoing financing round, LimX aims to significantly increase its valuation from previous rounds. As of July 2025, the startup had raised $69.31 million, with notable backers including Alibaba, JD.com, and Lenovo. Although Zhang refrained from discussing IPO plans, he emphasized that fostering local partnerships is his primary focus. Beyond the Middle East, Zhang sees potential in Europe’s fragmented market. LimX is not the only player in this burgeoning sector; other Chinese firms like Unitree have also showcased their humanoids at CES, signaling a growing trend of Chinese consumer electronics companies entering the U.S. market. With the global humanoid robot market heating up, the competition is intensifying for Tesla's plans. According to research from Omdia, around 13,000 humanoid robots were shipped worldwide last year, with Chinese manufacturers leading the charge. Notably, Figure AI, a U.S. competitor, ranked seventh, while Tesla's Optimus was ninth in terms of shipments. In a recent report, Morgan Stanley raised its forecast for China’s humanoid robot sales to 28,000 units this year, up from an earlier projection of 14,000. This projection emphasizes that business sales are expected to drive growth, overtaking previous sales focused on government and entertainment sectors. By 2050, the annual sales of humanoid robots in China could soar to 54 million units, according to Morgan Stanley. Meanwhile, Elon Musk indicated that public sales of the Optimus robot won't start until the end of 2027. LimX began delivering its humanoid robot, named Oli, several months ago, with the base model priced at 158,000 yuan (approximately $22,660). A more advanced version, allowing developers to customize functionalities, costs nearly double. Zhang aims to establish LimX as a leader in innovative technology, asserting that the narrative of the U.S. leading and China following in tech innovation must change. With ambitious plans to enhance voice command capabilities through agentic artificial intelligence, LimX's goal is to eliminate the reliance on remote controls in robot demonstrations. Earlier this month, the company announced its agentic AI "operating system" known as COSA, designed to enable robots to adapt their movements in real-time while performing tasks. Looking ahead, LimX's three-year strategy includes delivering thousands of humanoid robots to the Middle East primarily for research and development purposes. Although plans for the U.S. market are still in the early stages, Zhang believes that rapid advancements in the industry could see humanoid robots working alongside humans within the next five to ten years. As global markets evolve, Hong Kong's Financial Services Development Council Chairman Benjamin Hung highlighted a shift in investor focus from U.S. assets towards Asia and alternative investments. The ongoing changes in market dynamics signify that the world is witnessing a pivotal moment in the evolution of humanoid robotics and international trade.