China wants to invest billions in robotics and AI

The State Development and Reform Commission of China has announced that it will set up a publicly supported venture capital fund for robotics, artificial intelligence and cutting-edge innovations. A total of around 128 billion euros is to be raised over a period of twenty years.

With this initiative, China is aiming to continue its technology-based success story in manufacturing: Within ten years, the Middle Kingdom has increased its global share of installed industrial robots from around a fifth to more than half of total global demand.

"China has succeeded in modernizing its own manufacturing industry at an unprecedented pace," says Takayuki Ito, President of the International Federation of Robotics (IFR). "With its national robotics strategy published in December 2021, the country is demonstrating how the competitiveness of an economy can be systematically strengthened."

Robotics writes success story

Robot manufacturers from China have succeeded in significantly expanding their competitive position in their home market: The share of industrial robots installed by local suppliers rose from 30% in 2020 to 47% in 2023, with these robotics companies benefiting from a rapidly growing Chinese end customer market with rising demand for a wide range of consumer goods. Numerous industries are expanding their automation projects: Almost two thirds of all industrial robots in the global electronics industry, for example, were installed in China alone (2023). Chinese manufacturers supplied 54% of all units for this huge domestic market, accounting for around 33% of global demand in the electronics industry. In the domestic metal industry and mechanical engineering, Chinese robot suppliers even achieved a market share of 85%.

Venture capital for innovations

As a next important step, China aims to integrate robotics with other future technologies such as artificial intelligence, improved components and new application scenarios for intelligent manufacturing. This is illustrated by China's recent initiative to position humanoid robots as a cutting-edge technology and to set up a state-supported venture capital fund for this purpose.

"China has shown how ideas can be consistently transferred to industrial mass production," says Dr. Dietmar Ley, Chairman of VDMA Robotics + Automation. "Massive investments are currently being made in humanoid robotics. This not only applies to China - a country with a national strategy specifically for this - innovations in this area are also being driven forward in the USA with considerable venture capital. Europe must not lose out here. It is therefore crucial for Europe that humanoid robots leave the research laboratories and are produced in a scalable manner at competitive conditions. A coordinated approach is needed to ensure that Europe remains at the forefront of humanoid robotics."

China's People's Congress and the national robotics strategy

The 14th National People's Congress convened for its third session from March 5 to 11, 2025. China's highest legislative body formally adopts decisions on laws, policies and the administration of the country. The "14th Five-Year Plan for the Development of the Robotics Industry" is part of the "14th Five-Year Plan for the Economic and Social Development of the People's Republic of China" and the "Vision 2035".