Mainland China's growing robotics sector has allegedly been overrun by domestic companies which have fraudulently obtained vast amounts of subsidies from various local governments, according to industry insiders.
"The industry is now in a subsidies-driven bubble," Wang Cairong, the executive director at the China Artificial Intelligence Robot Industry Alliance, told the South China Morning Post.
"It's time to launch a nationwide campaign to investigate these companies which have received subsidies through deceit or illicit connections."
The mainland has been the world's largest market for industrial robots since 2013 as its vast manufacturing industry increased automation on the factory floor.
Total sales of industrial robots in the country reached 66,000 units last year, up 16 per cent from 2014, according to estimates from the International Federation of Robotics.
Chinese regulators in April expressed their intention to infuse more capital into the mainland robotics industry under a proposed five-year plan.