China’s top economic planner has issued a rare public warning about a potential investment bubble in the nation’s burgeoning humanoid robotics industry, signaling concern over market overheating despite the sector’s strategic importance.
The National Development and Reform Commission (NDRC), Beijing’s principal economic agency, highlighted a rapid surge in investment and the proliferation of manufacturers in a market that still lacks widespread adoption. This comes as a key industry stock index has seen significant gains.
Li Chao, an NDRC spokesperson, explicitly stated the risk of a bubble at a press conference in Beijing. He noted that over 150 humanoid robot manufacturers are now operating in China.
“Cutting-edge industries have long grappled with the challenge of balancing growth speed with bubble risk, an issue now confronting the humanoid robot sector as well,” Li said, according to reports by Bloomberg and Yahoo Finance.
Such warnings from Beijing are often seen as precursors to stricter regulatory measures or market corrections, as observed historically in sectors like real estate, internet, and private education.
The Solactive China Humanoid Robotics Index, which tracks companies in the segment, has climbed 26% this year, reflecting strong investor enthusiasm.
Despite these concerns, humanoid robotics remains a national priority, identified by the Communist Party as one of six key industries to drive economic growth through 2030.
The government aims to balance its push for innovation with managing financial risks in a sector deemed crucial for China’s technological competitiveness.
Citigroup Inc. anticipates “exponential” growth in humanoid robot production by Chinese manufacturers next year. Some companies, like UBTech, have already reported orders exceeding USD 138 million.
However, the NDRC expressed apprehension about a potential “inundation” of “highly similar” robot models. This could saturate the market and detract from genuine research and development, Li warned.
To address these issues, the NDRC plans to accelerate efforts in building fair market entry and exit mechanisms. It will also prioritize core technology research and development.
Further government support will go towards establishing training and testing infrastructure for complex robotic systems. The agency also aims to promote industry consolidation and resource sharing nationwide.
The ultimate goal is to accelerate the real-world application of humanoid robots in factories, services, and potentially homes, moving beyond the current limited adoption, according to the NDRC.