Beijing: China’s top economic planning agency is expressing concern over the rapid and large-scale investment pouring into the country’s humanoid robotics industry. The National Development and Reform Commission (NDRC) has warned that a proliferation of over 150 companies manufacturing similar types of robots could destabilize the market. Experts caution that this trend risks stifling genuine research and development (R&D). While investor enthusiasm remains high, authorities are urging caution, drawing lessons from previous investment bubbles.
China’s rapidly growing humanoid robotics industry, recently designated as a key economic engine by the Communist Party, is now becoming a source of tension for the government. The sudden surge in investment following the designation has prompted the nation’s top financial institutions to warn of the potential risk of a market bubble.
Market Stability at Risk
A recent report by Bloomberg details that the China’s National Development and Reform Commission (NDRC) has cautioned that the rapid emergence of more than 150 companies, many developing highly similar robots, could lead to market instability. Furthermore, experts have noted that this trend could potentially impede authentic R&D. NDRC spokesperson Li Chao stated that excessive supply and homogeneous technology could seriously disrupt the market equilibrium.
Echoes of Past Tech Booms
China has experienced similar investment frenzies in the past, notably within the bicycle-sharing and semiconductor industries. These sectors previously saw a situation of market saturation and numerous company failures following periods of intense over-investment.
Fears are now mounting that the humanoid robotics industry could face a similar fate. The sector’s popularity exploded this year after humanoid robots from Unitree Robotics delivered a widely acclaimed dance performance during the Spring Festival Gala, capturing national attention.
Investor Enthusiasm Drives Index Gains
Despite the regulatory warnings, investors remain highly optimistic. The Solactive China Humanoid Robotics Index is currently trading approximately 30% higher this year. Shares of UBTech Robotics Corp, one of the industry’s major players, reportedly surged over 4% on Friday.
Investment bank Citigroup forecasts that the global humanoid robotics market is expected to grow to $7 trillion by 2050, further fueling the current excitement and the influx of capital into the sector.
