China’s National Development and Reform Commission has revealed plans to establish a government-supported venture capital fund that emphasizes robotics, AI, and advanced innovation. The long-term fund is projected to draw almost 1 trillion yuan (US$138 billion) in investment from local governments and the private sector within 20 years. This effort seeks to maintain China’s technology-led triumph in manufacturing: Over the past decade, the nation’s worldwide portion of industrial robot installations has increased from about 20% to over 50% of global demand.
“China has achieved an extraordinary advancement in its manufacturing sector,” states Takayuki Ito, President of the International Federation of Robotics. “Drawing from their national robotics strategy published in December 2021, the nation has demonstrated a method for systematically enhancing competitiveness.”
The success narrative of robotics
Chinese robot producers have successfully increased their share of the domestic market: The yearly installations of industrial robots by local providers in China grew from 30% in 2020 to 47% in 2023. These robotics firms are gaining from a expanding Chinese consumer market with a rising need for various types of consumer products. Different sectors are increasing their automation capabilities: For instance, in 2023, almost two-thirds of industrial robots in the electronics sector are located in China only. Chinese manufacturers provide 54% of the industrial robots for this vast domestic market, accounting for roughly 33% of the worldwide demand in the electronics sector. Chinese robotics providers for the metal and machinery sector achieved a domestic market share of 85%.
Risk capital to innovate
As an important next step, China aims to integrate robotics with other emerging technologies such as artificial intelligence, improved core components and new application scenarios of smart manufacturing. This is illustrated by China´s recent initiative to position humanoid robots as a frontier technology and the newly approved state-backed venture capital fund.
“China has demonstrated how to leverage huge economies of scale,” says Dr. Dietmar Ley, Chairman of VDMA Robotics + Automation. “Massive investments are being made in humanoid robots, not only in China, where there is a national strategy for humanoids, but also in the US, where significant venture capital is driving innovation. Europe must not lag behind in this critical area. It is essential that European humanoid technology moves beyond the labs and into scalable, competitively priced production. This requires a coordinated effort to ensure that Europe remains at the forefront of humanoid robotics as well.”
About China´s National People’s Congress and the national robotics strategy
The 14th National People’s Congress (NPC) held its third session from 5 to 11 March 2025. The sessions serve as China’s top legislative body, where decisions about the country’s laws, policies, and governance are made. The “14th Five-Year Plan for Robot Industry Development” is included in the “14th Five-Year Plan for Economic and Social Development of the People’s Republic of China” and the 2035 Vision Outline.