China has warned that the hype around humanoid robots may create a market bubble

A Beijing official has warned that a market bubble could emerge in the rapidly growing humanoid robot industry, which is being pursued by more than 150 Chinese companies. Strong government backing and robust supply chains are helping these firms advance in developing AI-powered robots that could one day assist with everyday tasks.

However, the sector faces the risk of overcapacity as production scales up quickly without matching orders, Goldman Sachs recently noted.

Speaking at a National Development and Reform Commission briefing on Thursday, Chinese official Li Chao said: "‍‍`Speed‍‍` and ‍‍`bubble‍‍` have always been issues that need grasping and balance in the development of frontier industries." She added, "The same goes for the humanoid robot industry," in response to a question about bubble concerns.

Li highlighted the industry’s rapid growth, saying: "In recent years, driven by innovation and increased demand, humanoid robotics representing the scale of the embodied intelligence industry is seeing explosive growth." She also cautioned that "the sector is not yet mature in terms of technology, commercialisation or use."

More than half of China’s humanoid robot companies—a number that continues to rise—are "startups or ‍‍`cross-industry‍‍` entrants, which is a good thing for innovation," Li said. She also warned: "But we must also be vigilant in preventing products that are highly repetitive from ‍‍`gathering‍‍` in the market, squeezing research and development space and other risks."

An April report by consulting firm Leaderobot projected that China’s humanoid robotics industry would reach 82 billion yuan ($11.6 billion) in 2025, accounting for half of global sales. While large-scale real-life applications remain limited, ambitious trials have drawn headlines.

This month, Shanghai-based AgiBot set a Guinness World Record for the longest distance ever walked by a humanoid robot, completing a three-day, 100-kilometre (62-mile) journey. In August, Beijing hosted the world’s first-ever humanoid robot games, where over 500 “athletes” competed in events ranging from basketball to competitive cleaning.