China’s top economic planning body, the National Development and Reform Commission (NDRC), has warned that the rapidly growing humanoid robot sector is facing the danger of overheating. While China aims to become the future leader in the humanoid robot market, NDRC spokesperson Li Chao emphasized the need for healthy growth.
Is the humanoid robot sector a bubble?
Speaking in Beijing, Li Chao said that rapid advances in humanoid robot technologies must be carefully balanced with the risk of overheating. Even with significant investment in the field, the proven, widespread use cases for these robots in factories or homes remain limited.
“Pioneering technologies have always faced the challenge of balancing rapid growth with the risk of a bubble. The situation we see in the humanoid robot sector today is a prime example of this,” the NDRC spokesperson said.
There are more than 150 companies working on humanoid robotics in China. Li noted that more than half of these companies are either completely new ventures or companies that have transitioned from other fields. Warnings have been issued that this concentration could lead to duplicate projects and stall progress.
This announcement comes after the Chinese government designated the “embodied intelligence” technology behind humanoid robots as one of its strategic priorities. This area was identified by the Communist Party as one of the six critical sectors that will drive the country’s growth by 2030.
The humanoid robot sector has grown rapidly in the last two years. Numerous prototypes capable of walking, grasping objects, and performing basic tasks have been unveiled at major technology fairs in China. Companies have begun showcasing robots for areas such as warehousing logistics, simple production line tasks, and customer service.
While investors and analysts see this as a sign that the sector is maturing, most applications remain at the pilot stage, and widespread adoption is slow. Investment, however, is increasing rapidly.
Citigroup expects exponential growth in robot production next year as Chinese manufacturers increase capacity. UBTech, a leading player, announced orders exceeding one billion yuan. Interest in the market has led the Solactive China Humanoid Robotics Index to rise by approximately 26 percent this year.
Li Chao announced that steps will be taken to address a market overflowing with similar products and create space for innovation. Authorities plan to improve entry and exit regulations, create a more competitive ecosystem, and support fundamental research areas. China supports the growth of the robotics sector, but it wants this to happen without jeopardizing market stability.
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