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Robots advance on China's push

By MA SI | China Daily | Updated: 2018-09-17 07:16
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Aelos robots show off their abilities in education and performance during the 2018 World IoT Expo, Wuxi, Sept 15. They were also on stage at the Winter Olympics in Pyeongchang. [Photo by Xiao Da/chinadaily.com.cn]

Karel Eloot, senior partner at consultancy McKinsey & Company, said: "We forecast in 2020, the demand for robots in China will account for 40 percent of overall global demand. It will grow into a gigantic market for robot makers."

Agreed Qu Daokui, president of Siasun Robot & Automation Co. "To better prepare for the upcoming opportunities in China, we (Chinese robot companies) must go global. The robotics industry is so globalized and changing so fast that no one knows what a robot will look like in five to seven years. If we only keep our eyes on the home turf, we will die out."

Siasun Robot is looking to acquire cutting-edge robot technology leaders in Europe and the United States. Acquisition deals could be in the region of $1 billion upward. Similarly, HRG has set up a venture capital fund to invest in promising startups in the US.

Chinese home appliances maker Midea Group has bought a majority stake in German robot manufacturer Kuka GA.

"Broadly speaking, as the robot industry chain involves many categories and fields, it is difficult, if not impossible, for a single country to be an 'all-round champion' that fully controls the whole industry. Instead, countries tend to specialize in one area while relying on imports in other areas. That is also why international cooperation is so important," Qu said.

Not just important but urgent, given the US' groundless accusation that China has been limiting the market share of foreign companies in key sectors including robotics, industry experts said.

Zhu Sendi, a member of the National Manufacturing Strategy Advisory Committee, which advises the central authorities on manufacturing policies, said foreign robot makers have gained immensely from China's growing investment in smart manufacturing.

According to data from the China Machinery Industry Federation, in the China market, the combined share of international robot makers jumped to 73.2 percent in 2017 from 67.3 percent in 2016.

Liu Fang, China market director at Festo, a German multinational industrial control and automation company, said as Chinese manufacturers scramble to deploy highly automated machines in assembly lines, the country has evolved into a strategically important market for Festo.

"We have served more than 50,000 clients in the country, ranging from sectors like automobile, food, consumer electronics to water processing. Their demand for better automation solutions is inspiring our innovation efforts," Liu said.

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