Foreign Firms Dominate Chinese Robotic Industry with Advanced Technology

Published By : 21 Sep 2015 | Published By : QYRESEARCH

Though China is envisioning an automated future for its manufacturing sector, most of the automated tools are imported. The imported control systems used in the manufacturing of a wide range of products- from smartphones to cement trucks, are usually imported from German or Japanese firms. The Chinese automation industrial firms are struggling under the weakening economy and shrinking automotive sector. It is interesting to note that the industry analysts had already indicated about the failure of the domestic robotics industry when the Chinese government issued policies to boost the industry three years ago. 

Analysts have pointed out that the problem lies with the lack of technological expertise among the domestic robotic firms. With no patented technology of their won, the domestic firms are finding it difficult to compete on price alone.  Foreign companies have mentioned that they are well-positioned in the Chinese robot manufacturing market even though presently, the manufacturers have become cautious regarding capital investment amid slowing economy. However, foreign firms have pointed out that in the long run, the domestic robotic industry has a good chance to grow. With labour wages going as high as 10% a year, policymakers fear that there would be acute labour shortage and this will boost the need for robotic automation in manufacturing sector.

The foreign robot makers have downplayed the threat of Chinese competition in the sector as of now. According to Gu Chunyuan, the China head of Switzerland’s ABB Robotics, the foreign players have an upper hand in the knowledge of significant technology. The domestic players have too admitted the fact. Ma Junqing, the president of Dalian Machine Tool Group, has acknowledged that there is a gap in the technological knowhow of the domestic and foreign robotic firms. However, the domestic firms are investing in robot technology to up their game in the sector. 

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