US trade war weakens China’s position as global leader in automation and robot manufacturing
- Production cuts at robot makers in Guangdong raise questions about the outlook for the government’s investment in hi-tech industries
- Sales slump parallels problems in the cellphone manufacturing industry
Production among China’s robotics manufacturers is slowing as the trade war with the United States hits many of the industry’s biggest customers.
There is great uncertainty for the sector’s outlook. The US and China agreed a truce at the weekend that avoided a scheduled increase in tariffs, but duties on US$250 billion of Chinese imports to the US remained.
“China’s robotics industry is showing weakness from the impact of the trade war on the electronics industry, which is one of the most important customers of robot makers, accounting for one third of the sales,” said Nikkie Lu, an analyst at Bloomberg Intelligence. “China accounts for 70 per cent of the world’s electronic production capacity, and the trade war is weighing on their investment decisions in industrial robotics.”
China’s industrial robot production units, including output by foreign makers in China, reported a decline of 16.4 per cent in September following rapid growth of 30 per cent monthly in the first five months of this year, and later softened to growth of about 7.5 per cent between June and August, according to China’s National Bureau of Statistics.
In October, robot production fell to 9,590 units, down 3.3 per cent year-on-year, although output was affected by the week-long National Day holiday at the beginning of the month.