NVIDIA CEO: China's electric motor magnets are "the best in the world," and many American humanoid robots heavily rely on Chinese supply chains.

According to 1M AI News monitoring, research papers released by Disney show that the AI technology behind Disney’s displayed Olaf robot was provided by Nvidia and Google, but the parts that drive the neck and leg movements come from the Chinese robotics company Unitree Robotics. In a March podcast, Nvidia CEO Jensen Huang said that China’s microelectronics, motors, rare earths, and “magnets” are “the best in the world,” adding that “the global robotics industry will have to rely on it in large amounts.”

Tesla is assembling a team in China to connect with Optimus humanoid robot mass-production suppliers; employees have already reached out to sensor, motor, and component manufacturers, including frameless motors and joint reducers. After China tightened rare-earth magnet export controls last year, Tesla was forced to reduce the amount of rare-earth magnets used in Optimus. The joints, sensors, and motors of Figure AI’s early models also used Chinese suppliers, and when its latest model, Figure 03, appeared at a White House event in March, it claimed to be “made in the USA.” Some Chinese suppliers have already been preparing capacity in Southeast Asian countries such as Thailand to get around U.S. tariffs on China.

Morgan Stanley estimates that China’s supply chain can reduce the cost of manufacturing humanoid robots by up to two-thirds. Data from research firm TrendForce shows that parts that control motion (special motors and gears) account for about 55% of a robot’s total cost. Last year, Chinese companies rolled out 28 humanoid robots, about three times that of U.S. companies. Unitree Robotics plans to go public in Shanghai this year, aiming to raise about $610 million; the company says it had shipped more than 5,500 humanoid robots in 2025.