China has warned of a bubble in robotics. Is there cause for concern?
China's top economic planning agency has warned of the risk of a bubble forming in the field of humanoid robotics, Bloomberg writes. This is a rare expression of concern about the rapidly growing sector for the state, the agency notes.
"Advanced industries have long faced the challenge of balancing growth rates with the risk of bubbles - and now the humanoid robot sector is facing the same problem," Li Chao, a spokeswoman for the National Development and Reform Commission, said at a briefing in Beijing.
China has more than 150 manufacturers of humanoid robots, and the number continues to grow, Li said. The country needs to prevent an influx of "extremely similar" models that could overwhelm the market and crowd out research and development space, she added.
The call for vigilance reflects Beijing's alarm over the rapid capital inflow into the sphere, which the authorities consider one of the key economic engines of the coming years, Bloomberg writes. Humanoid robots are among six industries selected by the ruling Communist Party as future economic growth points for the five-year period through 2030, the agency explains.
The increased attention to the field has fueled investor interest - the Solactive China Humanoid Robotics Index, which tracks shares of Chinese robotics developers, is up about 26% since the beginning of the year.
What is China going to do about it?
Authorities will speed up work on market entry and exit mechanisms to create an environment of fair competition, Li said at the briefing. Priorities include accelerating research and development of key technologies and supporting the construction of infrastructure for training and testing, she said.
The government will also promote the consolidation and sharing of technological and industrial resources in this area across the country in an effort to accelerate the application of humanoid robots in real life, she added.
What's next?
Citigroup expects "exponential" growth in production next year from Chinese makers of humanoid robots. But while companies like UBTech report receiving orders worth more than a billion yuan, mass adoption of robots in households or factories has yet to happen, Bloomberg notes.
This article was AI-translated and verified by a human editor
