Economists flag valuation and inequality risks in China’s AI boom
China’s artificial intelligence-driven economic shift is prompting economists and industry figures to warn about two risks: overvalued humanoid robotics firms and a widening rich-poor divide. Daniel Zhang, formerly Alibaba’s chairman and CEO and now at FirstLight Capital, said Unitree Robotics is a strong company but faced unrealistic expectations after its shares dropped 55% from a post-listing peak.
At the FutureChina Business Forum in Singapore, Daniel Zhang—now managing partner at FirstLight Capital and formerly Alibaba Group Holding’s chairman and CEO—pointed to excessive market expectations around Chinese humanoid robotics. He cited Unitree Robotics as a strong firm led by a visionary founder, yet argued that no business could meet such inflated hopes.
Unitree’s shares had fallen 55% from their peak less than a month after a high-profile listing on Shanghai’s Star Market, a board for technology listings. The episode illustrates broader caution as China’s AI-driven economic shift draws investor enthusiasm and questions about valuations and the workforce more broadly.
If humanoid robotics valuations cool, investors and employees at speculative firms may face losses or slower hiring, while consumers could benefit if viable products emerge. A widening wealth gap may affect workers whose jobs are reshaped by automation and those with less access to AI gains. Policymakers and firms may face pressure to address distribution and retraining.