Chinese government has a new ‘scare’ and it is the country’s humanoid robotics industry. China’s burgeoning humanoid robotics sector, recently anointed a key economic catalyst by the Communist Party, is said to be attracting such an intense wave of investment that it is beginning to make Beijing uneasy. According to a report in Bloomberg, China’s powerful economic-planning agency has warned of the risks of a bubble forming in the country’s humanoid robotics industry, issuing a rare official expression of concern about a pivotal sphere of technology. The warning comes from China’s National Development and Reform Commission, which sets economic strategy and shifts in policy. The agency has called attention to the proliferation of remarkably similar robots from more than 150 companies in the same field. Agency spokeswoman Li Chao told Bloomberg that it is important for the country to prevent this flood of humanoid robots from overwhelming the market and squeezing out real research and development initiatives. “Frontier industries have long grappled with the challenge of balancing the speed of growth against the risk of bubbles — an issue now confronting the humanoid robot sector as well,” Li added.The Chinese government’s call for increased vigilance reflects growing anxiety over potential over-investment, an issue that has plagued past Chinese tech booms like bike-sharing and semiconductors, often resulting in market shakeups and consolidation. The development and funding frenzy has skyrocketed following Unitree Robotics’ viral performance during the Spring Festival Gala earlier this year, where its dancing droids captivated a nationwide audience. This surge in interest aligns with the ruling Communist Party’s new guidelines, which designated the humanoid robotics industry as one of six critical new economic growth drivers for China’s development plan through 2030.Investor enthusiasm is palpable. The Bloomberg report notes that the Solactive China Humanoid Robotics Index—which tracks the shares of robot-related companies—is up nearly 30% this year. Industry leader UBTech Robotics Corp., a potential beneficiary of any market consolidation, saw its shares gain more than 4% on Friday. Citigroup Inc. has projected the market could swell to $7 trillion by 2050, though widespread adoption of these robots in homes and factories is still considered years away. In 2023, China reportedly installed over 290,000 industrial robots, more than the rest of the world combined, with robot density reaching 470 robots per 10,000 workers, surpassing Japan and Germany for the first time.The sector’s profile has been further elevated by key government endorsements. Unitree founder Wang Xingxing secured a front-row seat at a seminal meeting in February with President Xi Jinping and other prominent tech leaders, including Jack Ma. Since then, droids from fast-growing startups such as AgiBot and Galbot have become social media sensations, showcasing capabilities like running marathons, kickboxing, and making coffee.The government’s plan, according to the official, is two-fold: accelerating research and development of core technologies while simultaneously supporting the construction of essential training and testing infrastructure. Furthermore, Beijing intends to “promote the consolidation and sharing of technology and industrial resources in the sector across the nation,” in a bid to hasten the real-world application of humanoid robots.
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