Unitree Robotics Sees Massive Shanghai Stock Debut Amid U.S.-China Tech Tensions

DANIELLE KURTZLEBEN, HOST: How do you feel about robots? Do you find them cool? Maybe a little unsettling? Well, this week made it clear that investors in Shanghai are very excited about robots. The Chinese robotics company Unitree made a tremendous debut on Shanghai stock market. The offering closed its first day way up - over 460%. But the investor frenzy comes despite concerns coming from the U.S. The Federal Communications Commission banned imports of foreign advanced robotics last month. For more, I'm joined now by NPR's Jennifer Pak in Beijing. Hello.

JENNIFER PAK, BYLINE: Hello.

KURTZLEBEN: So, Jennifer, this is fascinating. Can you start by giving us some background on this company, Unitree?

PAK: Sure. Unitree is 10 years old, and they initially started with robot dogs, and now they've expanded to humanoids. And I'd say they really broke out to the wider public during the Lunar New Year. They have this variety show called "The Spring Gala," and last year, Unitree had humanoids coming out dancing. This year's celebration, you might have seen the video.

(SOUNDBITE OF MUSIC)

PAK: So these are humanoids performing martial arts. Here, the gray robots, they're doing a style called drunken boxing, so the robots are staggering. They fall backwards. They get up again. I mean, Unitree is an absolute darling in China today, but it has drawn scrutiny in the U.S. In June, for example, the Pentagon added Unitree to its list of Chinese military companies.

KURTZLEBEN: Well, I'm curious about the practicalities here because dancing and fighting robots, they sound really cool. But what are people in China using these robots for? Like, why are investors so excited about the market potential?

PAK: Well, humanoids are seen as the future of AI, and there's a wide range of potential uses. Right now, research is the main purpose but also industrial factories, also inside the home, like cleaning, cooking, even folding your shirts. Robots inside homes is the most exciting category, but it's also the hardest to achieve, says Rinat Mirzaitov. He's the founder of Humanoid Analytics. That's a company that tracks humanoid robotic companies. He says it's tough for humanoids to really feel physical space, like, you know, moving around a chair or opening a door. For now, most of the humanoids are programmed or remote controlled, but he predicts a breakthrough in a few years.

RINAT MIRZAITOV: Not all tasks that we want, but some basic tasks, I guess, will be implemented autonomously, like bringing tea, bringing coffee, clean up houses.

KURTZLEBEN: Now, Jennifer, this is all fascinating because when I think about AI, my initial thought is, you know, ChatGPT or AI slop videos. But how are these different branches of AI advances related to each other?

PAK: The best explanation I've heard is that humanoid robotics is basically taking the AI that you know off the screen and it entering the economy - so inside factories, inside hospitals, and inside the home.

KURTZLEBEN: Gotcha. OK. So how dominant is China in the robotics space?

PAK: So Chinese companies are making most of the humanoids, and they're also the biggest buyer. But still, humanoids are not widely deployed yet, and that's because the robots' capabilities are still a work in progress, according to Unitree's founder, Wang Xingxing.

WANG XINGXING: (Speaking Chinese).

PAK: He says, "although our robots can now perform some basic assembly tasks, they are still less efficient than humans."

KURTZLEBEN: OK. Less efficient than humans. So where does all of this leave American advanced robotics firms? I mentioned that FCC ban that just happened.

PAK: Yeah. That was done on national security grounds. You know, these fears ranging from spying on Americans to assisting the Chinese military. But in China, Unitree is seen as a national flagship that really showcases its technological advantage in this tech competition with the U.S. And they can manufacture at lower prices. They have the complete supply chain here. And American humanoid companies - guess what? - they also rely on that same supply chain. Though, the U.S. still has an advantage in semiconductors and data. That analyst I mentioned earlier, Mirzaitov, he thinks there's not going to be a winner or loser, but both sides either win together or lose together.

KURTZLEBEN: That's NPR's China correspondent Jennifer Pak in Beijing. Thanks, Jennifer.

PAK: Thank you.