As artificial intelligence (AI) continues to play a growing role in China’s economic transformation, industry experts and economists are urging caution over inflated market expectations and concerns about widening inequality. Discussions at the recent FutureChina Global Forum in Singapore highlighted the challenges posed by the rapid rise of AI technologies, particularly in humanoid robotics, and their broader economic implications.
Daniel Zhang, managing partner at FirstLight Capital and former Alibaba Group CEO, pointed to the sharp decline in shares of Chinese humanoid robotics firms as evidence of overly optimistic valuations. Unitee Robotics, a prominent start-up in this field, saw its share price plunge by 55 percent less than a month after its high-profile listing on Shanghai’s Star Market, a Nasdaq-style exchange. Zhang characterized Unitee as an innovative company but warned that no firm could sustain excessively high market expectations.
“This valuation correction reflects the need to acknowledge economic realities if industrial progress is to continue,” Zhang said during a panel discussion focused on China’s industrial upgrade. He also noted heightened regulatory scrutiny on humanoid robotics companies planning initial public offerings (IPOs), signaling a broader move by Chinese authorities to temper market exuberance. Other robotics firms such as Deep Robotics and Leju Robot, which remain unprofitable, are expected to face similar pressures as they seek public listings.
The forum, held over two days, was convened by Business China, a Singapore-based nonprofit established to foster regional dialogue and cooperation.
Addressing the socioeconomic dimensions of AI adoption, Peking University economics professor Fan Gang expressed concerns about the uneven distribution of the technology’s benefits. Fan emphasized that while AI is generating new growth opportunities, these gains have been concentrated among a relatively small segment of the population, leaving lower-income workers behind.
“If salaries do not increase for the broader population and consumer demand does not expand, these disparities could create economic challenges,” Fan said, highlighting the importance of inclusive growth alongside technological advancement.
Meanwhile, investment figures cautioned that innovation should not be narrowly defined by AI and high technology alone. Foo Jixun, senior managing partner at Singapore’s Granite Asia, pointed to emerging consumer trends such as the global popularity of collectible toys like Pop Mart’s Labbub series and the rise of fitness competitions such as Hyrox as examples of innovation in lifestyle and service sectors.
“Economic transformation requires innovation across multiple sectors, not just technology-driven ones,” Foo said. He called for a balanced approach that includes cultural and service industry renewal alongside industrial upgrading to sustain long-term economic growth.
As investors continue to seek opportunities in AI and robotics, experts are calling for measured expectations and policies that address the socioeconomic impacts of these technological changes.