China's robot Renaissance: Business is growing thanks to automation

China's robot Renaissance: Business is growing thanks to automation

Beijing and Frankfurt am Main are the locations of a remarkable development in the global economy: China, the country with the largest population, is increasingly relating to automation and robot technology. The urge to generate economic growth and increase productivity caused the management level in Beijing to take a courageous course. This was particularly evident on the 3rd plenary of the China Communist Party in the middle of 2024, where decisive decisions to promote robot technology were made. The "International Funding for Robotics" (IFR) has moved these plans in Frankfurt am Main into the light of the public.

The President of IFR, Marina Bill, describes the developments as "extraordinary" and emphasizes that China's existence of industrial robots exceeded the 1.5 million mark two years ago. This is an international record. In 2022, impressive 290,258 industrial robots were installed - this means that China has every second robot installed worldwide. A clear indication that the country not only catches up, but its position as a global pioneer in robotics.

automation as a growth engine

Especially the automotive construction and the electronics industry play a crucial role as a growth driver in the Chinese economy. These sectors are increasingly relying on automation and robot technology, which increases the need for highly developed robots - both western and locals. In order to meet this great demand, domestic and foreign robot manufacturers have established production facilities in China and continuously expanded their capacities.

Another exciting aspect affects the local robot manufacturers. The strong demand in Germany leads to higher production numbers and technological advances. Chinese robots have the potential to gain a foothold in international markets, including Europe. However, the export number is still limited, with less than 5 percent of the total production that is sold abroad. Xiaogang Song, General Secretary of the "China Robot Industry Alliance" (Cria), points out that export activities have only been intensified in recent years.

competition and opportunities

The potential of the Chinese robot providers is strengthened by technological progress and lower production costs. Chinese companies already show competitive advantages in areas such as image processing systems and AI applications because they meet the requirements of fast-moving automation in China's production industries. At the same time, however, it is important to note that trust in the brand requires time. Chinese companies often work with local partners and rely on the integration of local employees to establish a solid market position.

The IFR emphasizes that it can take some time for the increasing technological competence and improved services meet the market requirements abroad. There are challenges, especially when it comes to gaining the trust of international customers. This is a process that runs step by step, while Chinese robot manufacturers are looking for new markets.

Overall, it can be said that China is on the best way to consolidate its economic position with a clear focus on robot technology and automation. The progress in these areas can not only increase productivity in your own country, but also play an important role in the global robot market in the future.

Author: Oiger

Source: IFR