(Las Vegas = News 1) Reporter Park Ki-beom Son Jae-kwon, CEO of The Milk
“China has declared an era of quality competition beyond production. CES 2026 heralds China Shock 2.0.”
The moment I entered the central hall of the Las Vegas Convention Center (LVCC), where the world’s largest home appliance and IT exhibition ‘CES 2026’ was held, the first thing that caught my eye was the huge TCL exhibition hall. This is the exact location where Samsung Electronics (005930) was located until last year. When Samsung moved to the hotel, China took advantage of the gap.
“Originally, that was Samsung’s location. Samsung moved to the Wynn Hotel, but since Samsung has not been in the same location for the past 15 years, I realized that there has been a big change.”
These are the words of Jaekwon Son, CEO of The Milk. This is not a simple change in exhibition space. It is a scene that symbolizes the structural transformation of the electronic IT market beyond the global TV market.
TCL takes Samsung Electronics’ seat… ‘Chase completed’ proven by numbers
TCL’s progress is clearly revealed in numbers. According to Counterpoint Research, Samsung maintained first place with 16% of global TV shipments in the fourth quarter of 2024, but TCL is closely following with 14%. Hisense followed with 12%, and LG Electronics (066570) followed with 10%. TCL surpassed LG to rank second globally in 2022, and the gap continues to widen.
TCL’s technological prowess, confirmed at the CES 2026 site, shattered the preconceived notion that it was a ‘low-priced Chinese product.’ TCL unveiled its self-developed SQD-Mini LED display and augmented reality glass Rayneo series. The premium TVs on display were difficult to detect in terms of picture quality compared to domestic products.
TCL created a separate space called ‘AiME LAND’ and introduced AI robot Aimee and an AI-linked smart home platform. It declared its transition from being a simple TV manufacturer to an AI, sensor, and smart home platform company.
Hisense, a Chinese brand located right next door, also showed off its technological prowess by introducing the world’s first four-color micro LED TV. The Hisense booth attracted a lot of attention as many people flocked to it.
These brands seemed to be putting effort into building ‘brand awareness’ at this exhibition. Olympic symbols were posted everywhere at the TCL booth. TCL is an official sponsor of the Olympic Games and an official partner of the NFL (National Football League). Samsung is following its strategy of becoming a global brand through its sponsorship of the Olympics.
Hisense sponsors the World Cup. The era has come when Chinese brands are recognized at major global sporting events such as the Olympics, World Cup, and NFL.
Humanoid robots account for more than half of China
It’s not just TV. China’s presence was also overwhelming in the ‘Physical AI’ area, a key keyword of this CES.
According to the official CES count, 21 out of 38 humanoid robot exhibitors (55%) are Chinese companies. According to a December report by Morgan Stanley, over the past five years, China has applied for 7,705 humanoid-related patents. During the same period, the United States recorded only 1,561 cases.
It is not just a matter of patent numbers. China is rapidly building mass production capabilities. Shanghai-based AgiBot has succeeded in mass producing 5,000 humanoid robots by December 2025. This is in contrast to the hundreds of Tesla Optimus units. AgiBot even opened the world’s first humanoid robot offline store in Beijing.
‘Sony Honda Mobility’ stands in Sony’s place.
The ‘SONY’ logo could not be found in the west wing of LVCC. The name that filled that position was Sony Honda Mobility.
“That space was originally occupied by Sony. It is a symbolic space that has maintained CES for about 48 years since 1977. But now it is appearing as a ‘mobility company’ along with Honda.” This is CEO Son’s explanation.
Sony has been a symbolic presence of CES for nearly 50 years since it first participated in CES in Chicago in 1977. In 1982, the world’s first CD player was unveiled, and in 1990, Chairman Akio Morita became the first Japanese to give a CES keynote speech. Sony has now put electric cars at the forefront instead of TVs, audio, and cameras.
Sony Honda Mobility unveiled the electric vehicle ‘AFEELA’ 1 as a key exhibit. It targets the premium electric vehicle market with an expensive vehicle costing over 100 million won. The first deliveries are planned to begin in California at the end of this year and expand to Japan in the first half of 2027.
Appila’s core strategy is linking with the PlayStation (PS) ecosystem. PS remote play is possible in the car, and a gaming monitor and console are placed in the back seat. It is equipped with 40 sensors (camera, lidar, radar, ultrasound) and an ECU with 800 TOPS computing capacity to support advanced autonomous driving.
CEO Son explained this exhibition as a change in Sony, a representative Japanese company. He said, “In Korea, people think that Sony doesn’t make money, but it’s a complete misconception. Sony has huge profits in the entertainment, imaging, and sensor fields. In that situation, it’s becoming more aggressive.”
Changes in Japanese companies could be seen elsewhere. Panasonic also shed its traditional manufacturing image centered on TVs and batteries at this exhibition and reorganized the exhibition to focus on energy management, AI, and platforms.
Why did Samsung go to the hotel… ‘B2B strengthening signal’
The most unusual change at this year’s CES was that Samsung Electronics set up an exclusive exhibition hall at the Wynn Hotel instead of LVCC. Advance reservations and identity verification were required at the entrance, and photography was limited.
Representative Son interpreted this in two ways. First, it is B2B focused. “CES main exhibition hall has a strong public exhibition character. It is difficult to quietly and deeply meet with B2B partners. Samsung’s move to the hotel means that it will focus on B2B.”
Second, technical security. “Chinese companies see new products at CES and quickly follow suit. Due to security issues, there are more technologies that are no longer difficult to disclose at LVCC.”
This strategy was first attempted by Nvidia in 2025. Domestic companies such as LG Electronics and Hyundai Mobis also established separate business spaces within the exhibition hall and restricted entry to general visitors. This B2B-centered exhibition strategy is expected to spread in the future.
The essence of China Shock 2.0… ‘Korean replacement’ Norimsu
CEO Son defined this CES as ‘the beginning of China Shock 2.0.’
“If China’s shock to other countries in the manufacturing sector is called ‘China Shock 1.0’, 2.0 is a qualitative change. What China is aiming for is ‘replacement of Korea’. It is not simply a matter of making things cheap, but there is a clear trend of directly targeting areas where Korea is strong.”
If China Shock 1.0 was an offensive of ‘quantity’, then 2.0 is an offensive of ‘quality’. The price is 2/3 of the Korean product, but the quality is almost the same. In addition, aggressive marketing such as Olympic and NFL sponsorship is being added.
However, Representative Son diagnosed that China’s weaknesses are also clear. In the AI era that includes diverse information, it is difficult for global consumers to trust Chinese products.
CEO Son said, “If China does not overcome security and trust issues, it will be difficult to pursue global expansion to the end,” and added, “This is why Samsung Electronics is working on integrated security, semiconductor, and AI technologies.”
Options left for Korean companies… K-brand needs to strengthen the power of technology and trust
Representative Son emphasized that it is not China’s price competition that Korean companies must compete with, but the essence of technology.
“In the AI era, it is important to ‘seize the alley.’ If you dominate a specific core technology, your influence across the industry will increase. If Korean companies secure technology-based competitiveness, a gap with China will naturally be created.”
The ‘alley’ that Korea needs to focus on is physical AI. It is difficult to beat the United States and China in the Large Language Model (LLM) scale competition. However, Korea can be competitive in areas that combine hardware, software, and manufacturing. The physical AI area, which combines AI with robots, automobiles, and home appliances, is right up your alley.
“Korean companies must now prove the power of the ‘K-brand’ through technology. Quality, not production, trust, not price. In that fight, the winner is decided.”
pkb1@news1.kr
