(Yicai) Sept. 30 -- Financing support, funding channels and government subsidies are some of the behind-the-scenes engines driving the rapid growth of the robotics industry in the Yangtze River Delta, one of China’s key manufacturing hubs that encompasses Shanghai as well as the provinces of Jiangsu, Anhui and Zhejiang.

Shanghai announced plans this year to raise the core industry scale of its embodied artificial intelligence sector to over CNY50 billion (USD7 billion) by 2027. It is also offering subsidies of up to CNY50 million (USD7 million) for individual projects as part of its plan to build five public service platforms, including one for computing power.

Shanghai Qinglang Intelligent Technology, also known as Keenon Robotics, was one of the first Chinese commercial service robot companies to expand abroad. The firm was given the confidence to ‘go global’ thanks to support from the Shanghai Pudong Development Bank which set up a cross-border yuan funding pool, supplied foreign exchange capital services and provided tools to preserve and grow funds, founder Li Tong said.

To date, the Shanghai-based firm has shipped more than 100,000 units worldwide, set up five overseas subsidiaries and operates in over 600 cities across more than 60 countries, providing over 1.23 billion services.

Another industry leader in the region is Estun Automation. The Nanjing-based firm follows a “industrial robots + mergers and acquisitions” strategy, and has snapped up advanced technology through a number of M&As in Germany and the UK in recent years. But the high cost of acquisitions has put the company under great financial pressure, so bank loans and industrial funds have become key supports.

The manufacturing industrial chain is long and major players need capital operations to make up for their shortcomings, so the risk appetite of financial institutions directly impacts how fast companies can grow, said Chief Financial Officer He Lingjun.

For instance, during Estun’s acquisition of German robotics firm CLOOS Group, SPD Bank provided the firm with a seven-year loan that initially required the listed company to act as guarantor, but later converted it into a credit-based M&A loan. This “dynamic credit” approach gave Estun more flexibility.

Estun has also played a leading role in forming an industrial cluster in Nanjing’s Jiangning district, connecting more than 150 companies in the area. SPD Bank offers financial services to nearly 100 firms in the district, ensuring full financial coverage and strengthening Jiangsu province’s competitiveness in industrial robotics.

Meanwhile, Zhejiang province is promoting the AI industry from multiple angles, including ecosystem building and talent development. In 2024, its AI industry achieved an annual output of over CNY570 billion (USD80 million), with Hangzhou-based firms accounting for more than 70 percent of total profits. The province is shaping a growth model with Hangzhou at the core, radiating outward to the Hangzhou Bay area.

Editor: Kim Taylor