On May 8, 2015, the State Council promulgated the Notice of Chinese Manufacturing 2025 (hereinafter referred to as the “Notice”). This was the first ten-year plan for the strategic promotion of development in the manufacturing industry throughout China. The Notice makes clear that the manufacturing industry is the most important component of the domestic economy, and is the foundation for strengthening the country.
Following the path laid out in the Notice, the China Ministry of Industry and Information Technology, the Development and Reform Commission and the Finance Department jointly issued a new Development Plan for the Robotics Industry (2016-2020) (hereinafter referred to as the “Plan”) on March 21, 2016. The Plan recognizes robotics as one of the most important supporting elements for a developing manufacturing industry, and as a significant tool for improving people’s quality of life. The Plan addresses lays out a five year path in the promotion of improvements in the technical aspects of robotics and the promotion of the robotics industry as a whole.
Since the naissance of the first robot in 1954, the robot industry has developed quickly worldwide. Over the last five years, the number of robots used in developed countries for every 10,000 workers in the manufacturing industry (the “robot density”) is about 200. In comparison the Chinese robotics industry lags far behind developed countries. Although the development of robotics technology has proceeded quickly and has been encouraged by national policies, the robot density in China over the last 5 years remains low at only 36 manufacturing robots per 10,000 workers in the industry.
Compared to developed countries, there are systemic deficiencies within the Chinese robotics industry which include the absence of essential components and equipment for the production of robots, difficulties in applying robotics in useful roles, and weakness in developing the core technologies. The Plan is an attempt by key agencies to systematically address each of these difficulties so as to improve the broader robotics industry in China.
These reforms are designed to be market oriented and innovation driven. The immediate goal is to first consolidate the existing foundation within the Chinese robotics industry and to gradually promote improved quality. The plan sets forth a goal of working toward a better coordinated robotics industry, including improving the industry’s innovation and competitive capabilities. In this way China seeks to achieve international levels of quality within its own robotics industry. As part of this, China’s own robot density ratio is expected to increase.
To do so, Chinese leaders have identified key points of focus for the robotics industry. Among these is a focus on identifying essential robotic technologies and components and improving Chinese ability to build these essential parts. The industry will also be pushed to innovate and to develop ways to demonstrate and apply robotic capabilities.
The plan also calls for China to be proactive in establishing leading enterprises. While it is not certain, these leading enterprises may be state owned companies with special funding and a mission to develop new robotics technologies. Foreign Investments connected to designing critical robotics related technologies, or the manufacturing of robots various kinds will be encouraged and may be offered special incentives.
According to the Plan, The Ministry of Industry and Information Technology and the Development and Reform Commission will take the lead in implementation of the Plan and will assign detailed tasks to local authorities so as to promote the above goals. Local officials will ensure implementation at the local level. Relevant professional associations and intermediaries will be called on to play a role in bridging the government and industry, to guide the response to new emerging difficulties and to provide recommendations for future developments.
Chinese policy makers recognize that whether in industrial and manufacturing usage, or in every-day live, innovations and applications in robotics technology are an important facet of scientific and technological progress. Chinese leaders have prioritized rapid and purposeful development of robotics technologies and the robotics industry as a means to promote continued industrial development in the face of demographic changes and technologic improvements around the world.
China may not be the cheapest place for low end manufacturing anymore, but for companies developing and manufacturing high end technologies like robotics, China may offer soon a compel-ling alternative to Europe or the USA.