China’s top economic-planning agency has raised concerns about a potential bubble forming in the humanoid robotics industry, marking a rare official expression of worry amidst the sector’s rapid growth. During a briefing in Beijing, Li Chao, the spokesperson of the National Development and Reform Commission, highlighted the challenge of maintaining a balance between growth acceleration and bubble risks in emerging industries. With over 150 humanoid robot manufacturers currently operating in China and their numbers on the rise, Li emphasized the necessity to prevent the market from being inundated with overly similar robot models. This flooding might impede space for essential research and development activities.
The cautionary tone from Beijing underscores the government’s apprehension regarding excessive investments pouring into the sector, which it views as a crucial driver of economic expansion in the forthcoming years. Humanoid robotics has been identified by the ruling Communist Party as one of the pivotal industries for future economic growth, according to China’s development plans until 2030. Forecasts from Citigroup Inc. predict a significant surge in production next year from Chinese humanoid robot manufacturers. Despite companies like UBTech receiving substantial orders valued at billions of yuan, widespread adoption of humanoid robots in households and factories has not yet materialized.
The industry’s growing prominence has captured investor interest, resulting in a 26% upsurge this year in the Solactive China Humanoid Robotics Index, which monitors the shares of Chinese companies associated with humanoid robotics. In response to these developments, authorities plan to expedite the establishment of market entry and exit mechanisms to foster an environment conducive to fair competition. Priorities will include advancing the development of core technologies, facilitating the construction of training and testing infrastructure, and promoting the consolidation and sharing of technology and resources nationwide to hasten the practical application of humanoid robots.
The government’s initiatives aim to address the potential risks of a bubble in the humanoid robotics industry while fostering sustainable growth and innovation to propel China’s economic development in the years ahead.
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