China’s Robot Dance Steals the Show, but Sparks Government Concerns

A spectacular robot dance during China’s New Year celebrations has captured public imagination, but it has also raised alarm bells for the Chinese government. The nation’s rapid surge in the robotics sector has prompted authorities to warn against potential economic “bubbles” that could burst if growth becomes unsustainable.

A Flood of Humanoid Robots
China is making significant strides in robotics, especially in the development of humanoid robots that look, move, and speak like humans. With the integration of advanced AI, these robots are now being programmed to mimic human-like thinking. The number of companies producing humanoid robots has skyrocketed, raising government concerns about over-investment and speculative bubbles.

Just months ago, the government hailed robotics as a key engine for the country’s economic growth. However, the sector’s rapid expansion—fueled by viral videos and media attention—has led authorities to fear a repeat of past investment pitfalls.

Government Warnings
According to Bloomberg, China’s National Development and Reform Commission (NDRC) has issued a warning that over 150 companies are producing similar humanoid robots, potentially stifling innovation. NDRC spokesperson Li Chao highlighted that rapid growth in new industries always carries the risk of speculative bubbles, and the robot sector is now at a critical point.

Lessons from Past Setbacks
China has experienced similar scenarios before. Shared bicycle startups attracted heavy investment before many failed. Semiconductor ventures also saw massive funding, only for several companies to incur losses. The government is determined to prevent the robotics sector from facing a similar fate.

How a Robot Dance Changed Everything
The turning point came during a televised Chinese New Year event when Unitree Robotics’ robots performed a dance, capturing the attention of millions nationwide. The viral video spurred a rush of investment, with entrepreneurs and investors eager to start robot-related ventures. Social media clips show robots making coffee, running marathons, and even boxing—fueling excitement and speculation.

Government Strategy Moving Forward
Earlier this year, a major meeting chaired by President Xi Jinping saw Unitree’s CEO Wang Xingxing seated prominently, alongside tech giants like Jack Ma. This underscores the government’s emphasis on robotics.

China now aims to balance rapid technological advancement with structured consolidation. Smaller, weaker companies may either merge with larger players or exit the market, ensuring sustainable growth.

The Goal: World Leadership in Robotics—Without Risk
Currently, robots are mostly confined to factories and show demonstrations, with household adoption still years away. Nevertheless, the combination of investment enthusiasm and technological ambition has prompted authorities to introduce cautionary measures. China aspires to be number one in robotics globally, but seeks to achieve this without risking economic instability.