"Local governments should avoid falling over themselves to invest the sector, regardless of calculating the level of their economic development and the basis of building robotic industry," said Qu Daokui, president of Siasun Robot Automation.

Chen Ji, director of the Institute of Industrial Economics in the Capital University of Economics and Business, also expressed his concern about the potential investment bubble in the industry.

"As high-end manufacturing is potentially able to boost local GDP growth and attract talents, some local governments tend to give big policy support in a bid to attract enterprises in robotic manufacturing. However, it turned out that the supply exceeded the market demand and caused a glut of similar projects," Chen said.