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China Pledges $138 Billion to Boost Robotics, AI, and Innovation

by sthv

China is investing heavily in robotics, artificial intelligence (AI), and advanced manufacturing, with a new state-backed fund expected to mobilize 1 trillion yuan ($138 billion) over the next two decades. The initiative, led by the National Development and Reform Commission (NDRC), aims to strengthen China’s position as a global leader in high-tech industries.

Rapid Growth in Robotics

China has rapidly expanded its manufacturing capabilities, now accounting for over half of the world’s industrial robot installations—up from just 20% a decade ago. Domestic robot manufacturers have also gained ground, increasing their market share from 30% in 2020 to 47% in 2023.

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Takayuki Ito, president of the International Federation of Robotics (IFR), praised China’s progress:
“China has upgraded its manufacturing industry at an unprecedented pace. Its national robotics strategy sets a strong example for boosting competitiveness.”

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Expanding Automation Across Industries

The push for automation is visible across key sectors:

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  • Electronics industry: Nearly two-thirds of global industrial robot installations in 2023 were in China.
  • Metal and machinery sector: Chinese suppliers now dominate with an 85% domestic market share.

The growth is fueled by rising demand for consumer goods and the need for efficient production.

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Next Steps: AI and Humanoid Robots

China plans to integrate robotics with AI-driven innovations, including advanced components and new “smart manufacturing” applications. A major focus is on humanoid robots, which the government now classifies as a frontier technology.

Dr. Dietmar Ley, chairman of VDMA Robotics + Automation, highlighted global competition:
“China and the U.S. are investing heavily in humanoid robots. Europe must accelerate its efforts to stay competitive—moving from labs to mass production.”

Government Backing and Policy Support

The investment aligns with China’s 14th Five-Year Plan, which prioritizes robotics and automation. The plan was discussed during the National People’s Congress (NPC) session in March 2025, where policymakers outlined strategies for long-term economic growth.

With this massive funding, China aims to solidify its lead in robotics and AI, shaping the future of global manufacturing.

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