As the growth of the Humanoid Robot market stands out worldwide, China has moved to seize the Humanoid Robot market in the same way it once encroached on the electric vehicle industry. The strategy is for the government to step in to foster the sector, accelerate the spread of the Humanoid Robot ecosystem, strengthen the industrial supply chain, and increase market share.
According to the Wall Street Journal (WSJ), Reuters and others on the 15th, China is ramping up state-level investment to dominate the Humanoid Robot industry. A representative approach is paying incentives. Local governments provide 10% subsidies when Humanoid Robots are purchased. They also provide land to adopting corporations and offer discounted rent. In Wuhan, Humanoid Robot and parts companies that meet sales targets receive 5 million yuan (about 1.05 billion won) in subsidies and free office space.
The subsidies that the Chinese government provided to Humanoid Robot corporations over the past year exceeded $20 billion (29.136 trillion won). The size of the fund created to support artificial intelligence (AI) and robotics startups is also 1 trillion yuan (about 210 trillion won).
Buoyed by this support, China's Humanoid Robot market is growing rapidly. According to the China Mobile Robot Association (CMRA), the number of Humanoid Robot manufacturers in China, which stood at 110 in April last year, nearly doubled in seven months to more than 200 in November.
Looking at the composition of corporations, 14% are large companies that have entered the robot business, 25% are robot specialist corporations, 9% are parts suppliers, and startups account for 52% of the total, forming a diverse robot ecosystem.
These corporations released 137 new products from January to October last year. They brought a new robot to market roughly every two to three days. The industry says this is possible because there are many manufacturers of key parts such as sensors and batteries located nearby, making parts procurement easy. It also strengthens innovation by making it easier to respond when additional parts are needed or when production schedules fluctuate.
Bank of America said in a report that while the current average Humanoid Robot parts procurement expense is about $35,000 (about 51 million won), the expense could fall to $17,000 (about 24.8 million won) by 2030 if sourced in China.
Investment bank Morgan Stanley forecast that more than 100,000 Humanoid Robots will be produced worldwide this year and that China will adopt them faster than the United States.
The United States is uneasy about China's growth in the robotics sector. The biggest concern is the possibility that U.S. robot companies' dependence on China's robot parts supply chain will deepen. Even Tesla's Humanoid Robot "Optimus" is said to procure robot hand parts from a Chinese supplier.
Elon Musk, Tesla's chief executive, said, "China is on a different level of strength in the Humanoid Robot field," adding, "There is no powerhouse that can compete with China in this field." The White House is also reportedly reviewing an executive order at the White House level that includes support measures to foster the robotics industry.
Some say the clash between China's growth and U.S. pushback could be an opportunity for Korea. The logic is that the United States is likely to use Korean products instead of buying Chinese robot parts and products.
Han Jae-kwon, a professor in Hanyang University's Department of Robotics, said, "Industrial revolutions in automobiles, home PCs, and smartphones took off when prices became rationalized, and from that perspective China's mass production of robots is highly meaningful," adding, "If the United States, which is ahead in AI, checks China, opportunities could come to Korea in the form of Boston Dynamics and Tesla using Samsung SDI and LG Energy Solution parts and batteries."