(Yicai Global) Oct. 20 -- China's industry chain for industrial robotics has taken shape thanks in part to government support. The leading makers have become competitive in the low- and mid-end markets, but cannot go against multinational players due to a lack of core competitiveness.
The domestic industry faces pressure from two sources, despite a booming market. First, foreign brands enjoy overwhelming advantages over Chinese manufacturers in terms of technology and component cost. Second, government subsidies have brought about serious challenges such as redundant development and intense competition in the low-end market.
Because of a technology gap in the development of core components such as speed reducer and servo, the country's robot makers are heavily reliant on foreign companies, which puts a serious obstacle in the way of industrial robotics development in China, according to an executive at Kuka Robotics Reis Robotics Corp.
Mr. Tu Wei, a former senior manager at Reis Robotics, told Yicai Global that acquisitions such as Midea Group Co.'s [SHE:000333] of Kuka AG may become increasingly commonplace. But in the short run, due to a lack of core competitiveness, China's manufacturers still have a long way to go before entering the high-end market.