China’s embodied artificial intelligence industry has witnessed significant growth this year, as indicated by a 22.4% increase in sales revenue during the first five months of 2026, based on tax data released by authorities. Industrial firms have notably boosted their purchases of embodied AI robots by 2.3 times compared to the previous year. Moreover, software and research and development (R&D) services have played a pivotal role in driving industry revenue, showing a notable uptrend.
Various key sectors within the industry, such as robotics manufacturing, AI algorithms, system integration, and industrial applications, have recorded impressive revenue growth ranging from 24% to 31%. Notably, supporting IT services have almost tripled in revenue. The geographical distribution of the sector is heavily concentrated in provinces such as Guangdong, Beijing, Shanghai, Zhejiang, and Jiangsu, which collectively represent the majority of industry activities. Guangdong stands out as the largest market within the sector.
In supporting industry growth, a tax authority official has expressed the government’s commitment to fostering innovation through tailored tax policies and enhanced services aimed at further expanding the industry. This proactive approach is designed to bolster the sector’s development and encourage continued momentum in the field of embodied artificial intelligence.
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