China shock looms for robotics as physical AI race heats up: think tank

China techTaiwan's DSET says Beijing making 'whole of nation' push similar to EV, drone strategyPhysical AI is emerging as one of the next frontiers in the global race for tech supremacy. © ReutersCHENG TING-FANGAugust 17, 2026 10:18 JSTTAIPEI -- The world could be headed for another "China shock" as Beijing mounts a whole-nation effort to dominate next-generation advanced robotics and physical AI, despite lagging in cutting-edge chips, sensors and precision machine tools, according to the latest assessment by a leading Taipei-based think tank.