China has been consistently consolidating its leadership in robotics and high technology for many years. The next and latest step in their strategy is the establishment of a state venture capital fund worth almost 1 trillion yuan (approximately 138 billion US dollars!) by China's National Development and Reform Commission.
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A robot revolution from beyond the Great Wall
The fund, which is being implemented in cooperation with local governments and the private sector, aims to support the development of robotics, artificial intelligence and disruptive technological innovations over the next 20 years.
Such activities are in turn part of China's broader strategy to transform the country from a ‘factory of the world’ into a global innovation hub. There are good prospects for this, as China's share of the global industrial robot installation market has been growing rapidly for a decade - from around 20 per cent to more than 50 per cent of global demand.
The success of Chinese robot manufacturers
It is no secret that Chinese robot manufacturers have seen significant growth in their domestic market share in recent years. The percentage of industrial robot installations from local suppliers has increased from 30 per cent in 2020 to 47 per cent in 2023. These companies are benefiting from a booming market and increasing demand for diverse consumer goods.
Production automation is gaining real momentum in many industries. Not to be outdone, in 2023, almost two-thirds of industrial robots used in the electronics industry were just installed in China. Domestic manufacturers supplied 54 per cent of these devices, corresponding to around one-third of global demand in this industry. An even higher share - as much as 85 per cent. - was achieved by Chinese suppliers of robots for the metal and engineering industry.
Integration of robotics with other technologies
China's next strategic step is to integrate robotics with other disruptive technologies, such as AI, improved base components and new application scenarios in smart manufacturing. An example of this approach is the development of humanoid robots as a technology of the future, which is gaining importance every year. The recently approved state investment fund supports this direction, which underlines the importance China attaches to this field and where it is looking for its advantages through long-term thinking.
Experts on China's strategy
Takayuki Ito, president of the International Federation of Robotics, believes that such a policy, is the result of foresight and wisdom. - China has made unprecedented progress in modernising its manufacturing sector. Building on its national robotisation strategy published in December 2021, the country has shown how to systematically build a competitive advantage, he said.
He was echoed by Dr Dietmar Ley, president of VDMA Robotics + Automation. - China has shown how to use economies of scale effectively. Huge investments in humanoid robots are being made not only in China, which has adopted a national strategy in this area, but also in the United States, where innovation is driven by private venture capital, he said, before adding that fortunately, European countries have understood that if they do not join this race, they will very quickly be left behind.
- Europe cannot be left behind. It is crucial that European humanoid technologies move beyond the laboratory phase and into scalable, cost-competitive production. This requires coordinated action to keep Europe at the forefront of global humanoid robotics,’ he concluded, quoted by Bloomberg.
Challenges and prospects
Despite its impressive achievements, China faces challenges in further developing its robotics sector. Indeed, the integration of advanced technologies requires not only huge investments, but also - and perhaps most importantly - the training of highly skilled professionals and the creation of appropriate regulations. In addition, increasing competition from other countries is forcing China to constantly bet on innovation and seek new application areas for robotics.
Nevertheless, a consistent strategy, huge financial investments and a determination to pursue technological dominance mean that China has a real chance to maintain and strengthen its leadership position in robotics and high-tech.
