China’s Humanoid Robotics Boom: Success or Inflated Dream?

In China, there is a rapid surge in the number of companies developing humanoid robots. According to the National Development and Reform Commission (NDRC) of the People’s Republic of China, more than 150 enterprises are currently working in this area, many of which are new startups or companies transitioning from other industries. However, this rapid growth is raising concerns among regulators who see the risk of a ‘bubble’ due to excess investment and insufficient real demand for such robots in industry and everyday life.

NDRC representative Li Chao stated that it is necessary to balance the fast growth of the industry with the risk of overheating. She noted that despite investor enthusiasm and demonstrations of prototypes that can walk, manipulate objects and perform simple tasks, the actual implementation of robots in production and services remains limited. Most projects are at the pilot testing stage rather than in large-scale contracts.

Despite this, investor interest in the sector remains high. The Solactive China Humanoid Robotics Index, tracking companies in this field, has grown by approximately 26% this year. China’s humanoid robotics market is projected to continue growing due to technological advancements like improved AI integration and better battery technologies. UBTech, one of the notable players in the market, announced orders worth more than one billion yuan (about $140 million).

UBTech has reportedly begun a significant expansion of its manufacturing capabilities with new facilities to augment production efficiency, aligning with forecasts of exponential market growth next year. Analysts from Citigroup forecast ‘exponential’ growth in robot production next year as more Chinese firms scale up production.

Consequently, regulatory authorities plan to tighten market control to prevent the emergence of too many ‘very similar’ solutions and preserve space for innovation. In particular, it is planned to improve market entry and exit rules, create more competitive conditions, and support fundamental research. The government also intends to strengthen resources for testing and training and encourage companies to consolidate knowledge and technologies. Experts have expressed cautious optimism for 2025, predicting robust growth in China’s humanoid robotics sector. However, they underscore the importance of regulatory policies in balancing growth with innovation, ensuring products truly meet industrial and domestic needs.