Beijing (AFP) – More than 150 Chinese companies are making humanoid robots, but a market bubble risks forming in the rapidly growing futuristic industry, a Beijing official has warned. Government support and strong supply chains are helping Chinese firms push ahead in the race to develop AI-powered robots that could one day help perform everyday tasks. However, the sector risks overcapacity as production scales up quickly without actual orders, Goldman Sachs warned recently.
On Thursday, Chinese official Li Chao spoke at a National Development and Reform Commission briefing, stating: “‘Speed’ and ‘bubble’ have always been issues that need grasping and balance in the development of frontier industries.” She added that “the same goes for the humanoid robot industry,” responding to concerns about a potential market bubble. This situation mirrors wider fears of a market crash fueled by frenzied investment in artificial intelligence technology worldwide.
“In recent years, driven by innovation and increased demand, humanoid robotics representing the scale of the embodied intelligence industry is seeing explosive growth,” Li noted. However, she cautioned that the sector is not yet mature in terms of technology, commercialization, or use. More than half of China’s 150 humanoid robot companies—an increasing figure—are “startups or ‘cross-industry’ entrants,” which Li described as beneficial for fostering innovation.
“Yet, we must also be vigilant in preventing products that are highly repetitive from ‘gathering’ in the market, which could squeeze research and development space and pose other risks,” she added. An April report published by Leaderobot, a specialist consulting firm, predicted that China’s humanoid robotics industry would reach 82 billion yuan ($11.6 billion) by 2025, accounting for half of global sales.
Large-scale real-life use cases remain elusive, but ambitious trials have made headlines. A robot made by Shanghai’s AgiBot set a Guinness World Record this month for the longest reported distance ever walked by a humanoid machine, completing a three-day, 100-kilometre (62-mile) trek. Additionally, Beijing hosted the world’s first-ever humanoid robot games in August, where more than 500 “athletes” competed in a range of disciplines from basketball to competitive cleaning.
© 2024 AFP
