China’s Robotics Sector Splits Between Bankruptcies and Booming Capital
China’s robotics industry is experiencing a sharp divide, with more than 20 companies going bankrupt, dissolving, liquidating or shutting down business lines over the past 19 months, even as funding surges and dozens of firms line up for stock listings.
According to public reports and court announcements, the closures between February 2025 and September 2026 span at least 11 different fields. Recent cases include Yinghe Robotics, which was once valued at US$500 million and counted Meituan and ByteDance among its shareholders. A Shenzhen court accepted a creditor’s liquidation petition in July, and the first creditors’ meeting was held on Oct. 19. In September, pool-cleaning robot maker Zhicheng Power faced a creditor-initiated restructuring petition. In May, Shenlan Robotics (Shanghai), which owed over 23 million yuan (about US$3.2 million) in back wages and was once valued at 14 billion yuan (about US$1.97 billion), entered liquidation. In 2025, CloudMinds’ liquidation was accepted, while its parent once had a peak valuation above 20 billion yuan (about US$2.8 billion).
Meanwhile, robotics financing in the first eight months of 2026 reached 124.51 billion yuan (about US$17.5 billion), double the 2025 full-year total. By July, 50 robotics firms had entered the listing process.
Commentators argue that a technology bubble and a capital bubble have both been exposed. Many companies, they say, rely on continuous fundraising rather than positive operating cash flow, leaving them vulnerable when capital tightens. The result is a split in which high-quality firms keep raising money and going public, while weaker projects collapse.
An October report from the China Academy of Information and Communications Technology noted that despite rising attention from investors and policymakers, the embodied intelligence sector faces bottlenecks in scaling applications and building stable profit models, with a clear gap between demos and real delivery. It predicted the market would complete its first round of shake-out over the next two to three years.
Source: Central News Agency (Taiwan), October 21, 2026
https://www.cna.com.tw/news/acn/202610210323.aspx
China Launches Online Campaign Targeting Military-Related Content, Including Posts on Service Hazards
China’s top internet regulator and other agencies have announced a two-month campaign, starting in October, against “improper marketing and hype” in military-related online information. Radio Free Asia reported that earlier official cases show the targets extend beyond fraud, fake news and vulgar marketing to include content officials deem “negative,” such as accounts discussing service hazards, soldiers’ illnesses and one-sided readings of military policy.
In November 2025, the Cyberspace Administration of China cited some online accounts for posting content on the dangers of serving in certain places and diseases contracted in the military, labeling it “poorly oriented.” The notice did not say whether the claims were false, and RFA could not find the original posts.
China’s military news outlet said the campaign enforces rules on spreading military information online, with platforms acting as “gatekeepers” through content review and account verification. The notice does not explain how veterans can discuss injuries, stress or resettlement difficulties without being accused of damaging veterans’ image. A 2023 Hunan provincial report said local governments lacked jobs, funds and staff to meet veterans’ expectations, turning grievances into petitions.
Researcher Du Zhenyi of Taiwan’s Institute for National Defense and Security Research said the rules signal that all military speech is controlled by the Communist Party and restrict outside analysis of the military. Fellow researcher Bryce Barros said content making the army look weak could be seen as threatening social stability.
The campaign also covers AI-generated fake stories, fake soldiers selling goods on livestreams, leaks of sensitive information and bogus recruitment-exam training.
Source: Radio Free Asia, October 21, 2026
https://www.rfa.org/mandarin/yataibaodao/2026/10/21/pla-online-information/
Shandong Official’s “Personal Responsibility” Remark on Elderly Care Sparks Public Backlash
Shandong Provincial Civil Affairs Department head Zhuang Yan has drawn criticism after saying the public should see “the individual as the first person responsible for elderly care.” He made the remark at an Oct. 16 provincial press conference, placing it within a section on family roles. He said personal retirement education and planning guidance would be added to aging-awareness and senior education programs.
The comment came six days after Vice Minister of Human Resources and Social Security Li Zhong said authorities would use “data matching” to find uninsured people and bring them into the social security system.
Shandong resident Ms. Lu said the message amounted to telling people not to rely on the state. She added that falling birth rates make depending on children unrealistic as well. She noted that rural seniors receive only 100 to 200 yuan ($15–$30) or 200 to 300 yuan ($30–$44) a month, barely enough to live on. Online commenters complained of unfair contributions and benefits, noting that payments keep rising while retirement ages are pushed back.
Shandong has over 25 million seniors, a number growing by about one million annually. Officials say the province has 24,000 community care facilities and 98,000 home-based care beds.
Shandong financial scholar Si Ling said the civil affairs department may be testing public reaction, and that funding for elderly services could shrink.
China’s 2025 budget report showed social insurance fund revenue of about 12.60 trillion yuan ($1.86 trillion), including 2.91 trillion yuan ($431 billion) in government subsidies, against spending of 11.14 trillion yuan ($1.65 trillion). Without subsidies, the shortfall would be about 1.45 trillion yuan ($215 billion).
Separately, Xinhua reported Oct. 19 that former National Council for Social Security Fund deputy chief Wang Wenling was expelled from the party and public office on bribery allegations.
Source: Radio Free Asia, October 21, 2026
https://www.rfa.org/mandarin/shehui/2026/10/21/china-elderly-care-ministry-of-human-resources-and-social-security-older-adults-social-security-funds/
Report Says Over Half of China’s AI Token Use Goes to Short Dramas and Video Generation
As Beijing pushes to develop its AI industry, a business report released by the listed Chinese company Chinese Online (中文在线) has drawn attention to how the country’s AI computing resources are being used. According to the report, 55 percent of AI tokens consumed in China go to short dramas and video generation, 24 percent to e-commerce advertising, and only 15 percent to research and development. The figures have fueled public debate over whether more than half of China’s computing power is being used to churn out “feel-good” dramas.
The data comes from the company’s investor relations activity record. It shows that token consumption for AI short dramas and video generation is more than double that of software development. Chinese Online said the heavy usage stems from the fact that short dramas demand extremely fast video generation and token turnover.
Commentators have questioned whether directing so much computing power toward a single content format is an efficient path for deploying the technology or a collective drain caused by overcapacity.
A report on AI-driven global micro-drama development, jointly released by a research center under China’s National Radio and Television Administration and other bodies, found that the global micro-drama market entered a boom phase in 2025. Its total size approached US$18 billion, with China accounting for more than US$14 billion, or 77.78 percent. Separate data shows 430,000 micro-dramas went online in China from January to August this year, 13 times the total for all of 2025.
Reports note that AI-generated live-action dramas typically consume two to three times as many tokens as AI animated series because of stricter visual requirements. Production teams also repeatedly generate and screen footage to meet directors’ demands for narrative and camera work, which drives consumption higher.
Not everyone agrees with the characterization. Liu Xing, public relations head for ByteDance’s AI platform Doubao, said only about 10 percent of the company’s total computing power goes to training and running video generation models.
Source: Central News Agency (Taiwan), October 20, 2026
https://www.cna.com.tw/news/acn/202610200105.aspx
Former PBOC Governor Zhou Xiaochuan Warns AI Investment Boom Carries Financial Risks
Zhou Xiaochuan, former governor of the People’s Bank of China, said on October 20 that while several major directions could help AI applications boost productivity, they also entail risk. Speaking at a roundtable at the 2026 Bund Summit on AI and the productivity revolution, he noted that heavy investment is flowing into data center construction, but it is uncertain how far future large AI models and applications will depend on data center computing power.
Zhou divided AI-related investment into three categories: large models along with the computing power and data centers used to train them; AI applications, which China is paying closer attention to; and supporting industries such as semiconductors, electricity and liquid cooling. He considered the third category safe, since AI development will require water and electricity regardless of how it unfolds.
He said productivity gains would come mainly from the application layer, citing lightweight models that shrink large models for use in cars, laptops and smartphones, and distillation. Although some worry distillation infringes intellectual property, Zhou argued it represents an upgrade in intelligence, building on existing knowledge, and could bring investors generous returns. He also named model iteration, AI-related semiconductors and large simulation models as other developments.
On international cooperation, Zhou said rapid change makes governance frameworks difficult, but at least three steps are feasible: restricting military uses, combating hackers and fraudsters, and protecting personal privacy. Effects on employment, income distribution and social structure remain at the observation stage, with no consensus yet.
On finance, Zhou urged letting price mechanisms respond to shifting global supply and demand rather than relying excessively on administrative measures. He also warned that if some of the enormous sums flowing into AI and related infrastructure fail, financial turbulence or crisis could follow, requiring large-scale economic support and rescues of some financial institutions. He called for research and contingency planning, with suitable tools stored in the policy toolbox.
Source: Yicai.com, October 21, 2026
https://www.yicai.com/news/103401935.html
China’s Office Vacancies Climb as Foreign Firms Retreat and Local Companies Cut Back
Office vacancy rates in China are rising as foreign companies pull out and domestic firms scale back their leased space. According to a second-quarter comparison by Japanese real estate services firm CBRE of 20 cities worldwide, Shanghai topped the list with a vacancy rate of 24.5 percent, while Beijing ranked eighth at 17.9 percent.
Citing Nikkei Chinese, the report said Shanghai’s vacancy rate has risen 5.1 percentage points since the fourth quarter of 2019, before the COVID-19 outbreak. That was the steepest increase among major global cities, compared with 3.8 points in New York, 0.7 points in Tokyo and 2.6 points in London.
One factor is foreign divestment. Data from China’s State Administration of Foreign Exchange showed net foreign direct investment inflows of US$26.6 billion in the second quarter, down 23 percent from the first quarter. Beyond Western firms, some Japanese companies have also reduced investment in China amid worsening China-Japan relations.
Shanghai’s Lujiazui financial district still glitters at night when viewed from the Bund. However, a Chinese social media influencer recently exposed the reality of lights left on for appearances. Visiting an office tower near the Oriental Pearl Tower at night, his video showed at least five empty offices with lights on only near the windows.
The problem has spread inland. In Chongqing, one vacant office of roughly 200 square meters had a partly collapsed floor and cables hanging from the ceiling, with the name of its last tenant still on the door. A notice outside advertised only a “discounted price,” with no figure given, and said the rent was negotiable.
Most Chinese office buildings are owned by state-owned enterprises, so vacancies do not immediately hurt their finances. But rising vacancies in their high-yield properties and oversupply would push rents down, putting pressure on privately owned offices. Caixin recently reported that a 20 percent vacancy rate is widely seen as the “red line” for urban office oversupply.
Source: Central News Agency (Taiwan), October 20, 2026
https://www.cna.com.tw/news/acn/202610200318.aspx
AI Reshapes Online Public Opinion Governance, Chinese Official Argues, Calling for Stronger Safeguards
The rapid spread of artificial intelligence is becoming a key variable in managing online public opinion, according to an article by the head of Chongqing’s municipal cyberspace administration office. Citing Xi Jinping’s call to build legal, technical monitoring, risk warning and emergency response systems, and to keep AI under human control, the author argues that AI both creates new risks and offers new governance tools.
The author says AI is reshaping how opinion forms and spreads in three ways. Large models and deepfakes allow false content to be mass-produced cheaply, including through “AI troll armies.” Algorithms can also amplify and regenerate topics, prolonging controversies and manufacturing fake public sentiment. Finally, the contest between regulators and rule-breakers has become an escalating technological arms race, with evasion techniques such as text rewriting and image tampering.
These trends challenge traditional governance. Verifying authenticity is harder, assessments can be skewed by artificially inflated popularity metrics, and responsibility is difficult to assign among model developers, users and platforms.
The author proposes three sets of measures. First, tighten source controls: graded registration and safety assessment of large models, mandatory labeling and traceability of AI-generated content through digital watermarks, and crackdowns on the illicit industry behind AI-driven opinion manipulation, with clearer lines of liability. Second, build human-machine collaboration in analysis, in which AI gathers data and tracks accounts while officials make value judgments and final decisions, supported by regular algorithm audits and a joint fact-checking system among propaganda, cyberspace and media bodies. Third, create a closed-loop defense system featuring multimodal monitoring and early warning, differentiated interventions such as adjusting recommendation weights for divisive false content, and public education on spotting deepfakes, alongside training specialists who can validate AI outputs.
Source: Study Times, October 21, 2026
https://www.studytimes.cn/jjsh/202610/t20261021_93257.html
China Tightens Export Controls on Tunnel Boring Machines, Adjusts Rules for Dredgers and Drones
China announced a new batch of dual-use export control measures on Monday, placing tunnel boring machines under export controls for the first time and adjusting the rules governing dredgers and drones. The measures take effect on November 18.
The Ministry of Commerce and the General Administration of Customs said the controls on tunnel boring machines cover shield machines, rock tunnel boring machines and other large engineering equipment, along with key components and related technology. Walking excavators capable of operating in complex terrain and wet-spraying machines suited to high-altitude work are also included.
The two agencies also revised controls on dredger-related items, focusing on key equipment and parts such as mud pumps, drag heads and cutter heads, and clarified the technical specifications.
In a separate notice, issued jointly with the Central Military Commission’s Equipment Development Department, authorities refined the technical standards for controlled drones. Drones that can be flown beyond the operator’s natural line of sight, have a maximum endurance of 30 minutes to three hours, and can take off and fly stably in gusts above 46.3 kilometers per hour require a license for export, as do similar drones with endurance of three hours or more. The adjustment also eases some exports: drones meeting certain endurance and wind-resistance standards can be registered to obtain an export certificate before each shipment instead of applying for a regular license each time, and drones sent to non-defense, non-police exhibitions and returned unchanged afterward may also use registration.
A commerce ministry spokesperson said the items have clear dual-use characteristics and that the controls accord with international practice and help meet non-proliferation obligations. The spokesperson added that Beijing is willing to discuss export control policy with other parties through bilateral dialogue mechanisms. On drones, the spokesperson said some formerly advanced products have become mass consumer goods, and that China opposes the misuse of drones for non-peaceful purposes while supporting civilian drone trade.
A July report by a Chinese industry research institute put China’s global market share in tunnel boring machines at about 70 percent, with annual output of more than 700 units. Another think tank projected that China’s 2025 shield machine exports would reach US$4.5 billion, mainly going to Southeast Asia, Europe and the Middle East.
Source: Central News Agency (Taiwan), October 19, 2026
https://www.cna.com.tw/news/acn/202610190263.aspx