A senior Arm executive has hailed China as a key testing ground and showcase for physical AI, as robots and smart cars are becoming increasingly commonplace in the world's No 2 economy.

"China is moving at 'China speed'," said Drew Henry, executive vice-president of the company's Physical AI Business Unit, on Tuesday.

He said the country not only offers rich application scenarios but also serves as a demonstration hub for physical AI, which he believes is fundamentally transforming the world.

Physical AI embeds artificial intelligence directly into devices, enabling near-instant responses from perception to action — a capability critical for smart vehicles, robotics, and other smart platforms.

Henry said Arm has partnered with major Chinese automakers and technology firms to deploy smart driving and robotic solutions.

Globally, 2 billion units Arm-based chips were shipped for automotive and robotics areas in 2025.

Henry said the company's extensive ecosystem in China allows it to bring global technology into the country while exporting Chinese innovations worldwide in the meantime, reinforcing its influence on global autonomous trends.

"Visiting China has been extremely rewarding — our team has greatly enjoyed engaging with the country's vibrant innovation ecosystem," Henry said.

He mentioned a visit to a Chinese car plant where robots are widely used on the day of his arrival in China, saying "it is one of the most exciting things I have ever seen."