Chinese startups are setting up operations in Singapore to reassure global clients that their intellectual property is insulated from Beijing’s oversight, while U.S. firms are drawn by easier access to international talent amid tightening visa rules at home, industry executives and analysts said.

Kerry Goh, chief executive of Kamet Capital, said relocating operations to Singapore provides “comfort” to international clients by ensuring data and intellectual property are governed locally. He cited support for a new AI video venture launched by former executives of Alibaba as an example of this shift.

The trend reflects broader fallout from intensifying Sino-U.S. competition over advanced technologies, including export controls and talent mobility restrictions. Policies under U.S. President Donald Trump, particularly changes to H-1B visa rules, have made it harder for companies to deploy global workforces in the United States.

Singapore has responded with incentives aimed at building an AI-focused economy, including fast-track visas for skilled workers and tax benefits for intellectual property registration. Officials say these measures have strengthened the country’s appeal as a technology hub.

Major global firms are expanding their presence. AI developer Anthropic is planning a Singapore office, according to people familiar with the matter, joining companies such as OpenAI, Meta’s Superintelligence Labs, and Google’s DeepMind.

At the same time, the shift has raised concerns among policymakers. Washington has tightened restrictions on advanced chip exports, including limits on sales by Nvidia to China, while Beijing has reportedly imposed constraints on talent mobility for some AI firms expanding overseas.

Analysts warn Singapore’s growing role as a “neutral” jurisdiction could draw scrutiny from both sides. Chong Ja Ian, a political scientist at the National University of Singapore, said the city-state risks being viewed as a grey zone for technology transfers, potentially prompting regulatory pushback.

Despite such risks, companies continue to be attracted by Singapore’s streamlined visa processes, with some employment passes approved within days, and its reputation as a stable, business-friendly environment.

Over 70 teams—almost five times the number in 2025—are set to participate in the event, which will feature a more demanding course including paved slopes and parkland terrain designed to test improvements in durability, balance and battery performance.“It will certainly be interesting to see the progress in durability of components and battery lifetime compared to last year,” said Georg Stieler, Asia managing director at a technology consultancy.

He added that manufacturers continue to face pressure to balance product quality with cost as the technology evolves.Organizers said the race marks a shift from last year, when all participating robots were remotely controlled. In contrast, a significant share of entrants this year will rely on onboard sensors and algorithms to complete the course independently, highlighting gains in perception and decision-making systems.

Among the contenders is Tiangong Ultra, developed by the Beijing Innovation Center of Humanoid Robotics in collaboration with UBTech. The robot, which won last year’s race in 2 hours and 40 minutes, is expected to run fully autonomously this time, using sensor-based navigation and data-driven gait modeling.

Developers said achieving human-like running speeds presents significant technical challenges due to the limited time available for real-time perception and response. Training footage shared on Chinese social media shows some robots reaching speeds of up to 14 km per hour, though others displayed instability, with occasional falls and collisions.

China remains the dominant player in humanoid robotics deployment, accounting for more than 80% of the roughly 16,000 units installed globally in 2025, according to Counterpoint Research. By comparison, U.S.-based Tesla held about 5% of installations.

Domestic firms including AgiBot and Unitree each shipped over 5,000 units last year, with Unitree planning to scale annual production capacity to 75,000 robots.Despite rapid growth, industry experts say humanoid robots remain far from widespread commercial adoption in industrial environments, where precision, adaptability and complex task execution are required.

Current applications are largely limited to research, demonstrations and service roles such as interactive guides.“The reason our applications aren’t taking off is that the robots’ IQ is too low. The models are poor, their success rates are low,” said Tang Wenbin, founder of embodied intelligence startup Yuanli Lingji, speaking at a recent Beijing forum.

The Chinese government has identified embodied intelligence, or physical AI, as a strategic sector to enhance productivity and modernize manufacturing. Companies are investing heavily in data collection and machine learning, often using human workers equipped with sensors to train robotic systems.

UBTech said it expanded the number of humanoid robots deployed in factories from fewer than 10 in 2024 to more than 1,000 last year, and aims to launch 10,000 full-size units in 2026, including models tailored for commercial use, according to its chief business officer Michael Tam.