SHANGHAI, Oct. 11 (Xinhua) -- "It's watching me!" This was a shout that emerged from an excited group of children gathered around a fluffy robot at a bookstore in east China's Shanghai. Named LOVOT, the robot tilted its head, blinked with expressive eyes, and stretched out its arms, seeking a hug.

Passersby paused to snap photos, admiring its pet-like charm. "It's like having a pet that knows how to cuddle," one remarked.

Developed by Japanese tech company GROOVE X, LOVOT, a merger of "love" and "robot," prioritizes companionship over industrial functionality. LOVOT has made a strong impact with its presence, having already expanded to urban spaces and homes in numerous Chinese cities.

"Chinese consumers embrace innovation, especially in Shanghai's open, inclusive and creative environment," said Hayashi Kaname, LOVOT's creator and founder of GROOVE X. "China is an ideal market."

An industrial report valued China's potential companionship robot market at nearly 1 trillion yuan (about 140.6 billion U.S. dollars) -- split between seniors seeking health support and youth desiring trend-focused interactions.

Tao Xidong, a researcher at Shanghai Academy of Social Sciences, observed that China is becoming a testing ground for tech innovation. Its vast market and diverse demands create unparalleled space for AI products to evolve.

This trend is not only attracting overseas companies. The Chinese local market is also meeting companionship needs in diverse ways. When climbing Mount Tai in east China's Shandong Province, an exoskeleton robot provides "climbing companionship." When going to the hospital alone, an AI assistant accompanies throughout the diagnosis and medication pickup.

From offline scenarios to online platforms, companionship that connects technology and emotions is emerging in all aspects of life.

"In the past, we thought smart devices were exclusive to young people, but now they have become our intimate assistants," said 72-year-old Wang Fenlan. She uses an AI voice assistant every morning to check the weather, then follows a smart TV to practice Tai Chi, and even asks DeepSeek to recommend nutritional recipes for her. Simple interactions have introduced a new dimension to her daily life of living alone.

Not limited to households, applications combining technology and companionship are also becoming active in large public events.

At the 2025 China Open this October, the robot dog brought by a Chinese technology company, Loona, attracted much attention. On the training court, it acted as a "ball boy" to help players pick up and deliver balls. In the interactive experience area outside the court, it interacted with the audience, even chatting about serving techniques. Inside and outside the China Open venue, the presence of a robot dog added a touch of relaxation and fun to the tense competition.

"The forms of companionship are changing, but people's need for warmth has never changed," said Zhu Keli, founding dean of the China Institute of New Economy.

He said that the "companionship economy" has a broad social foundation and continuous growth potential. In the future, service forms will become more vertical and segmented, deepening from functional companionship to interest sharing, spiritual connections, and other levels.