China to invest $137B in robotics and high-tech industries, reports IFR

Shanghai-based Fourier Intelligence provides one example of humanoid robot development in China. Source: IFR

While other countries debate the best mix of public policy, academic research, and private investment to advance their economies, the People’s Republic of China is focusing on robotics. China’s National Development and Reform Commission has announced plans for a state-backed venture capital fund focused on robotics, artificial intelligence, and innovation.

According to the International Federation of Robotics (IFR), the commission expects the long-term fund to attract nearly 1 trillion yuan ($137.8 billion) in capital from local governments and the private sector over 20 years.

This initiative aims to continue China’s technology-driven success in manufacturing, noted the IFR. In 10 years, the country‘s global share of industrial robot installations has risen from around one-fifth to more than half of the world’s total demand, it said.

“China has succeeded in upgrading its manufacturing industry at an unprecedented pace,” stated Takayuki Ito, president of the Frankfurt, Germany-based IFR. “Based on their national robotics strategy released in December 2021, the country has set an example of how to systematically strengthen competitiveness.”

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China not only uses robots; it increasingly produces them

“Chinese robot manufacturers have been able to significantly expand their domestic market share,” said the IFR. In 2023, China surpassed Germany and Japan in robot density, with 470 robots per 10,000 employees.

Annual installations of industrial robots by local suppliers rose from from 30% in 2020 to 47% in 2023. These robot companies are benefiting from a growing Chinese consumer market.

In addition, various industries are expanding their usage of automation, the IFR reported. For example, in 2023, nearly two-thirds of industrial robots in the electronics industry are installed in China alone. Chinese manufacturers supply 54% of the industrial robots for its huge domestic market.

China has supplied more robots to its manufacturers over the past decade. Click here to enlarge. Source: IFR

Humanoids a ‘frontier technology’

The U.S. has been a leader in innovation, thanks to its universities and culture of entrepreneurship. In response, China has said it plans to integrate robotics with AI, improved components, and new applications in smart manufacturing, explained the IFR.

This is illustrated by the Ministry of Industry and Information Technology’s focus on humanoid robots as a frontier technology and the newly approved state-backed venture capital fund. The ministry has also directed investment in research and development in the country’s 14th Five-Year Plan.

In July 2024, five organizations in Shanghai drafted guidelines for humanoid development. At its Third Plenum, the Chinese government said that the domestic market and humanoids will be key to economic growth.

In October, the National Local Joint Humanoid Robot Innovation Center and various Chinese companies announced a data-sharing initiative to support the industry. The China International Industry Fair showcased numerous industrial and humanoid robots.

Earlier this month, Xpeng Motors CEO He Xiaopeng said that the electric vehicle maker could invest as much as 100 billion yuan ($13.8 billion) into humanoid development. The company claimed that its Iron robot is already working in an automotive factory.

Investments have international implications

“China has demonstrated how to leverage huge economies of scale,” said Dr. Dietmar Ley, chairman of VDMA Robotics + Automation. “Massive investments are being made in humanoid robots, not only in China, where there is a national strategy for humanoids, but also in the U.S.”

The VDMA Robotics + Automation association has warned that Germany “has lost competitiveness” and that the European Union should pursue more aggressive industrial policies and invest in innovation.

“Europe must not lag behind in this critical area,” he added. “It is essential that European humanoid technology moves beyond the labs and into scalable, competitively priced production.”

The Robot Report reached out the Association for Advancing Automation (A3) about recommendations for U.S. industry and reaction to China’s latest announcements. Responses will be added when and if A3 responds.

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