What is the Chinese robot industry monopolized to break through the road?

The rapid advancement of technology is reshaping the world every day, and the winds of progress are continuously shifting directions. With the arrival of the intelligent era, "smart manufacturing" has become a key trend in China, creating new opportunities and challenges. On May 19, 2015, the "Made in China 2025" initiative was officially launched, emphasizing the importance of intelligent manufacturing as a strategic direction. Within this field, the Chinese robot industry has stood out due to its growing significance, supportive policies, and increasing investment. In recent years, China's robotics sector has made remarkable progress: in 2013, domestic industrial robot output was only 9,000 units. By 2016, that number had surged to 72,400—more than seven times higher. However, the growth of the Chinese robot industry hasn't been smooth sailing. Faced with initial disadvantages and a late start, local manufacturers have struggled against foreign competition. As the saying goes, "there are wolves in front and tigers behind," and Chinese companies have had to fight hard just to survive and emerge in the market. In 2014, often referred to as the "first year of China's robot industry," the sector began to accelerate its development. But prior to that, the domestic robot market had long been dominated by foreign brands, with local products accounting for less than 10% of the market share. The gap between China’s robot industry and its international counterparts is significant. Foreign robot industries have been developing for over three decades since the 1980s, building strong advantages in technology, production scale, and cost control. In contrast, China’s robot industry started much later and has faced long-standing challenges from the weak foundation of its manufacturing sector. A major bottleneck for domestic companies lies in the production of three core components: the controller, the reducer, and the servo motor. These parts are crucial for robot performance, yet reliable domestic alternatives have been lacking. As a result, Chinese manufacturers have had to rely on imported components at significantly higher costs. For example, the harmonic reducer—a critical part used in many robots—is monopolized by Japanese company HD. According to Zhang Jie, CEO of Harmony, the price for these reducers sold to foreign robot giants like ABB, KUKA, FANUC, and Yaskawa is around $2,000. However, when sold to Chinese manufacturers, the price jumps to over $6,000. This huge disparity puts Chinese companies at a severe disadvantage. Zhang emphasized, “As the world’s largest robot market, China has long been controlled by foreign players. Without breakthroughs in domestic core components, the Chinese robot industry will never gain real independence.” Indeed, high procurement and maintenance costs have made it difficult for Chinese manufacturers to compete, especially without technological advantages. As a result, they have struggled to maintain competitiveness in the face of global giants. Given this challenging situation, the need to develop China’s own core components has never been more urgent. In 2011, Li Liangjun, founder of Canop Robotics, recognized the potential. “China, as a manufacturing powerhouse, has a huge demand for robots. As the market grows, so will the demand for domestic solutions,” he said. Soon after, the Canop team was formed. In September 2012, Chengdu Canop Automation Control Technology Co., Ltd. was officially established. From the beginning, the company focused on developing one of the three core components—the robot controller. Known as the “brain” of the robot, the controller is responsible for issuing and transmitting action commands. Its capabilities determine the breadth of application, while its performance dictates the depth of use in industrial settings. At the time, foreign brands dominated the controller market. To break this monopoly, Canop embarked on a tough journey. With limited resources and technical experience, many local manufacturers lacked basic knowledge about robotics. To overcome these challenges, Canop not only worked on improving its own controllers but also helped other robot manufacturers solve technical issues and application problems. To support underfunded local companies, Canop added a precision calibration feature to its controllers. By 2017, their controllers had matured and gained recognition in the market. Through perseverance and innovation, Canop has become a symbol of China’s growing self-reliance in the robotics sector.

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