China’s rapid push into artificial intelligence and humanoid robotics is attracting billions of dollars in investment, but economists and business leaders are warning that the transformation carries risks ranging from excessive valuations to a widening gap between higher- and lower-income workers.
Daniel Zhang, managing partner of FirstLight Capital and former chairman and chief executive of Alibaba Group Holding, said the sharp decline in some Chinese humanoid robotics stocks reflected expectations that had become excessive. Speaking at the FutureChina Business Forum in Singapore on Friday, Zhang said Unitree Robotics was “a great company with a visionary entrepreneur” but added that “no company could withstand such high expectations”.
Unitree, one of China’s rapidly expanding humanoid robot makers, saw its shares fall 55 per cent from their peak less than a month after its listing on Shanghai’s Star Market, according to the source. Zhang warned that the experience could have wider implications as other robot manufacturers prepare to seek listings. “Many robot makers are lining up for IPOs, but none of them could withstand seeing their valuation slashed by half after listing,” he said during a panel discussion on China’s industrial transformation. “We need to respect the objective realities for the economy to move forward.”
Chinese regulators have also increased scrutiny of humanoid robotics start-ups seeking to list on mainland stock exchanges amid concerns about excessive market hype, according to The Information, as cited in the source. The greater regulatory attention is expected to affect companies including Deep Robotics and Leju Robot, which remain unprofitable after filing for initial public offerings.
The debate over AI extends beyond financial markets to the distribution of economic gains. Fan Gang, an economics professor at Peking University, said the benefits generated by AI development were being concentrated among a relatively small group of people, while lower-income workers had yet to experience comparable gains.
“New growth dividends are benefiting the smaller group of people … AI will make this problem even more serious,” Fan said. He warned that without higher wages and stronger consumption among the wider population, China’s economy could face difficulties. “If there is no salary increase for the general population, if there is no consumption expansion from the general public, the economy is faced with problems,” he said.
The concerns were discussed at the annual two-day FutureChina Business Forum, organised by Business China, a non-profit organisation launched in 2007 by Singapore’s founding prime minister, Lee Kuan Yew, to strengthen regional ties and promote dialogue.
While much of the investment surrounding China’s economic transformation has centred on AI and robotics, Foo Jixun, senior managing partner at Singapore-based investment firm Granite Asia, pointed to opportunities emerging from changing consumer habits. He cited the global popularity of Pop Mart’s Labubu toys and growing interest in fitness competitions such as Hyrox as examples of lifestyle trends creating new commercial opportunities beyond technology.
Foo said innovation remained necessary for industrial upgrading and economic transition but argued that it should not be confined to advanced technology. “However, that should not be limited to hi-tech and AI, but should also extend to the service sector and cultural industries,” he said.
