China’s top economic planning agency has warned that a bubble could occur due to excessive investment in the country’s growing humanoid robot sector. In the statement made by the National Development and Reform Commission of China, it was emphasized that growth in this rapidly developing field should be continued in a balanced manner.
Commission spokesman Li Chao, in his statement at the press conference, stated that the growth momentum in the sector comes with risks. According to Li, investments in humanoid robots that have not yet proven wide-scale applicability in real life may lead to a large number of similar and repetitive products flooding the market in the near future. This situation, along with the shrinkage of research and development budgets, may weaken the innovation capacity of the sector.
More than 150 humanoid robot companies operate across China
More than 150 humanoid robot companies currently operate in China. A significant portion of these companies are companies that have previously operated in different fields or newly established enterprises. This may lead to a lack of experience and standardization problems in the sector, as well as an obstacle to technological progress.
This assessment of the Commission stands out as a rare cautious approach from the Beijing administration. Earlier in the year, the Chinese administration defined “embodied intelligence” technologies, which mean artificial intelligence systems integrated with physical structures, as a national priority and launched serious incentive programs in this field. In this regard, humanoid robots were also highlighted as a strategic area for economic growth in the future.
Despite this, the statements made by the Commission indicate that only growth-oriented policies may not be sufficient. According to Li Chao, companies in the industry need to make more efforts in differentiation and developing real-world use cases. Otherwise, the current investment frenzy may not be sustainable.
In addition to all these, experts point out that humanoid robot technologies have serious potential, especially in healthcare, elderly care and production lines. However, it is stated that in order to achieve efficiency increases in these areas, technologies must be tested in the field, optimized and long-term return analyzes must be carried out. For this, not only financial investment, but also factors such as engineering capacity, trained workforce and regulatory support must be evaluated together.