China issues warning for humanoid robot industry!

China’s leading economic planning body, the National Development and Reform Commission (NDRC), warned on Thursday that a “bubble” could form in the humanoid robotics sector. This warning comes amid growing concerns that the artificial intelligence bubble, a related industry, is about to burst.

The Risk of “Highly Similar” Products

NDRC spokesperson Li Chao stated at a press conference that China’s humanoid robotics industry must strike a “balance between growth rate and bubble risk.” Li noted that despite the limited proven use cases for robots, the sector is seeing significant investment. This, he said, poses the risk of the market being flooded with “highly similar” models as funding for research and development (R&D) dwindles.

According to Li, more than 150 humanoid robotics companies currently operate in China. More than half of these companies are startups or new entrants from other sectors.

The warning is a rare note of caution for a sector that Beijing has declared vital to future economic growth. Earlier this year, China designated “embodied intelligence,” the technology behind humanoid robotics, as a national priority.