CHINA – China’s National Development and Reform Commission has announced the creation of a state-backed venture capital fund focused on robotics, AI, and cutting-edge innovations.

The long-term fund, aiming to raise nearly USD 138 billion over 20 years, will draw investments from local governments and the private sector. This initiative aims to continue China’s success in technology-driven manufacturing, where its global share of industrial robot installations has surged from 20% to more than half in the past decade.

Chinese robot manufacturers have expanded their domestic market share significantly, with local suppliers’ share of industrial robot installations rising from 30% in 2020 to 47% in 2023. The growing Chinese consumer market, along with increased demand for automation across industries, has driven this shift.

For example, nearly two-thirds of the world’s industrial robots in the electronics industry were installed in China in 2023, with Chinese manufacturers meeting 54% of the domestic demand and 33% globally. The metal and machinery sectors have seen an even more impressive market share of 85% for local suppliers.

Looking ahead, China plans to integrate robotics with emerging technologies like AI, advanced components, and smart manufacturing applications. This move aligns with China’s recent focus on humanoid robots, backed by the new venture fund.

“China’s rapid transformation of its manufacturing industry shows how ideas can be turned into large-scale industrial production,” says Dr. Dietmar Ley, Chairman of VDMA Robotics + Automation. “Massive investments are also being made in humanoid robotics in both China and the US. Europe must act to keep pace, ensuring humanoid robots are produced at scale and competitively.”

The initiative aligns with China’s “14th Five-Year Plan for the Development of the Robotics Industry,” which is part of the broader “14th Five-Year Plan for Economic and Social Development” and Vision 2035.