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But the problem is that China's robots are imported. The Chinese government hopes to nurture the local robot industry.
This year alone, 77 local governments have launched plans to support the robotics industry. The Shenzhen government plans to invest US$76 million annually to support the robotics industry. The Guangdong government plans to invest US$55 million this year. All investment will be used for corporate subsidies and infrastructure construction in industrial parks.
Inevitably, government investment has attracted a wide range of people. According to the Economic Observer newspaper, many companies are not trying to do business but are trying to cheat government subsidies. In 2015, 65% of the profits of a robot R&D company in Nanjing came from government subsidies.
In contrast, there has been little development in the Chinese robotics industry. Of the robots used in China today, 85% are from overseas. Parts of domestic robot manufacturers rely mainly on foreign imports.
In order to defraud subsidy, many companies have created concepts into the robot market. This actually caused the supply side bubble. It seems that there are many participants in the industry, but most of them do not occupy a good job. The large amount of funds from the government supporting the industry has flowed into such enterprises and caused the industry's overall weakness.
Now that the Chinese government needs to think about how to develop the Chinese robotics industry, it also needs to think about how to cut down on companies and invest money in real businesses to prevent waste companies from defrauding government subsidies.
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