China's humanoid robot industry is growing at such a furious pace that it has now begun to worry the Chinese government itself. What was supposed to be the country's next big technological success story is suddenly looking like a potential bubble, one big enough to unsettle Beijing.

Beijing Warns of a 'Robot Bubble'

According to a Bloomberg report, China's National Development and Reform Commission (NDRC), the powerful agency that shapes the country's economic strategy, has issued an unusual warning over an overheating robotics sector.

Officials say more than 150 companies are now building humanoid robots, many of them producing strikingly similar models. NDRC spokesperson Li Chao said the flood of near-identical robots risks crowding out companies doing real research and innovation.

“Fast-growing frontier industries always face the challenge of balancing rapid expansion with the danger of bubbles and the humanoid robot sector is no exception,” she said.

The concern stems from China's past tech frenzies, bike-sharing, EV batteries, semiconductors, where massive investment booms often turned into brutal shakeouts.

Viral Dance Bots Sparked a Funding Frenzy

The latest investor rush began earlier this year when Unitree Robotics' dancing humanoids went viral during the Spring Festival Gala, China's most-watched TV event. That moment catapulted the industry into the national spotlight.

The timing was perfect. The Communist Party had just identified humanoid robots as one of six“strategic growth drivers” for its 2030 development plan.

Since then:

• The Solactive China Humanoid Robotics Index is up nearly 30% this year
• Industry giant UBTech Robotics saw shares jump more than 4% on Friday
• Citigroup projects the market could explode to $7 trillion by 2050

Though these numbers sound staggering, experts say it will still be years before humanoid robots become common in homes or factories.

China Already Leads the World in Robot Deployment

China installed more than 290,000 industrial robots in 2023, more than the rest of the world combined. Its robot density has now hit 470 units per 10,000 workers, overtaking Japan and Germany for the first time.

This rapid rise has been fueled by political encouragement. Unitree founder Wang Xingxing recently sat front-row at a key meeting with President Xi Jinping, Jack Ma, and other tech leaders.

Startups like AgiBot and Galbot have also skyrocketed in visibility, showing off robots that can run marathons, make coffee, or even kickbox - turning them into social media sensations.

Government Plans Tighten as Sector Overheats

Beijing now wants to rein in the mania while keeping the innovation push alive. Officials say they plan to:

• Boost research into core robot technologies
• Build national testing and training facilities
• Encourage companies to share technical and industrial resources
• Support consolidation to eliminate copycat players

The goal is clear: stop the speculative frenzy before it collapses, while still pushing China toward robot leadership.

China vs US: A New Tech Showdown

A global robot race is already underway and China and the US are the main contenders.

Experts say:

• China leads in quantity, production scale, and affordability
• The US leads in AI capability, engineering quality, and advanced prototypes

At Tesla's recent shareholder meeting, Elon Musk appeared on stage with the Optimus humanoids and announced a future factory in Fremont capable of producing 1 million robots a year, priced at around $20,000 each.

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