Page 328 - 2021 White Paper
P. 328
1 White Paper on the Business Environment in China
total power of China's agricultural machinery had producer. America also buys a lot of industrial
reached 1.0037 billion kW, up 1.6% on a like-for- robots, but not nearly as many as China. The
like basis. The comprehensive mechanization rate Chinese market for industrial robots has been the
of crops for the whole year edged up 1.87 points world’s largest since 2013 and has quadrupled
YoY to 69.1%; wherein, the overall mechanization in size since then. In 2018, China accounted for
rate of wheat fetched the highest 95.89%, and 36% of total worldwide installations, followed by
the comprehensive mechanization rate of Japan (13%), the US (10%), South Korea (9%) and
rice, corn and soybean was above 80% apiece. Germany (6%). The latest year for which complete
Under favorable policies, the comprehensive and finalized IFR statistics are available is 2018.
mechanization rate of crops in China is rising
year by year, expectedly reaching 77% by 2026. At The IFR’s industrial robot statistics include
present, China's plant protection UAV penetration handling, welding, assembly, dispensing,
rate is far below the world average. It is clearly cleanroom, processing and other machines
put forward in the State Council's Guidelines on readily recognized as industrial robots. They do
Accelerating the Transformation and Upgrade not include components such as precision gears,
of Agricultural Mechanization and Agricultural sensors, control units or software. By region, the
Machinery & Equipment Industry issued in 2018 to breakdown of industrial robot installations in 2018
'actively develop agricultural aviation, regulate and was Asia-Pacific 67%; Europe 18%; the Americas
popularize plant protection UAVs'. So far, Hubei, 13%; and others 2%. By industry, robotics were used
Jiangxi, Shandong, Hunan, Anhui, Guangdong and in automotive 30%; electrical and electronics 25%;
other provinces and cities have rolled out subsidies metal and machinery 10%; plastics and chemicals
for plant protection UAVs each of which is granted 5%; food and beverages 3%; and not specified
more than 10,000 RMB. Opportunities come with 19%. China’s government-supported acquisition
challenges in the agricultural machinery of China. campaign, which now faces strong headwinds
The growing number of collective users such as in both Europe and the US, is aimed at advanced
cooperatives, farms, and agricultural reclamations technology. Siasun, China’s top industrial robot
year by year and the policies for subsoiling, maker, is affiliated with the state-linked Chinese
deep plowing, land circulation and agricultural Academy of Sciences. So far, the campaign has
machinery purchase subsidies are conducive to been a success. And while America distances itself
the burgeoning demand for large, high-end and from China in the name of decoupling, European
intelligent machines like high-power tractors. With and Japanese companies are helping to build
stricter environmental requirements, off-road China’s industrial robots (Foster).
machinery emission standards will be inevitable
upgraded and the technical threshold for industry Nevertheless, China counts more than 800
accession will be raised ever (Cision). robot makers, including major players Siasun and
DJI Innovations. Development of robotics is part of
Robotics an ambitious Made in China 2025 master plan to
upgrade the nation’s manufacturing technologies.
In the debate over the rise of China and the China is on track to account for 45% of all industrial
reindustrialization of America, many claim that robot shipments by 2021, up from 39% in 2019. In
China threatens America’s lead in industrial the past, China has lagged behind other nations in
automation. But that’s plain and simply not the robotic workforces, counting 97 industrial robots
case. Japan and Europe overtook America in the per 10,000 manufacturing workers, half as many
cutting-edge field long ago and they, not China, are industrial robots as the US and one-seventh as
currently the world’s leading suppliers of industrial many as South Korea. Clearly, the virus outbreak
automation equipment. There are many aspects to has put a renewed urgency behind the trend
leadership in industrial automation, but industrial towards increased automation and use of robotics
robots are an indicator of both the sophistication in China. Wages in China are no longer cheap,
and scale of a nation’s manufacturing. China buys and US companies with operations in China have
a lot of industrial robots, but it is not yet a major been hit hard by the virus. Industries that are most
impacted are those with large assembly operations
328
total power of China's agricultural machinery had producer. America also buys a lot of industrial
reached 1.0037 billion kW, up 1.6% on a like-for- robots, but not nearly as many as China. The
like basis. The comprehensive mechanization rate Chinese market for industrial robots has been the
of crops for the whole year edged up 1.87 points world’s largest since 2013 and has quadrupled
YoY to 69.1%; wherein, the overall mechanization in size since then. In 2018, China accounted for
rate of wheat fetched the highest 95.89%, and 36% of total worldwide installations, followed by
the comprehensive mechanization rate of Japan (13%), the US (10%), South Korea (9%) and
rice, corn and soybean was above 80% apiece. Germany (6%). The latest year for which complete
Under favorable policies, the comprehensive and finalized IFR statistics are available is 2018.
mechanization rate of crops in China is rising
year by year, expectedly reaching 77% by 2026. At The IFR’s industrial robot statistics include
present, China's plant protection UAV penetration handling, welding, assembly, dispensing,
rate is far below the world average. It is clearly cleanroom, processing and other machines
put forward in the State Council's Guidelines on readily recognized as industrial robots. They do
Accelerating the Transformation and Upgrade not include components such as precision gears,
of Agricultural Mechanization and Agricultural sensors, control units or software. By region, the
Machinery & Equipment Industry issued in 2018 to breakdown of industrial robot installations in 2018
'actively develop agricultural aviation, regulate and was Asia-Pacific 67%; Europe 18%; the Americas
popularize plant protection UAVs'. So far, Hubei, 13%; and others 2%. By industry, robotics were used
Jiangxi, Shandong, Hunan, Anhui, Guangdong and in automotive 30%; electrical and electronics 25%;
other provinces and cities have rolled out subsidies metal and machinery 10%; plastics and chemicals
for plant protection UAVs each of which is granted 5%; food and beverages 3%; and not specified
more than 10,000 RMB. Opportunities come with 19%. China’s government-supported acquisition
challenges in the agricultural machinery of China. campaign, which now faces strong headwinds
The growing number of collective users such as in both Europe and the US, is aimed at advanced
cooperatives, farms, and agricultural reclamations technology. Siasun, China’s top industrial robot
year by year and the policies for subsoiling, maker, is affiliated with the state-linked Chinese
deep plowing, land circulation and agricultural Academy of Sciences. So far, the campaign has
machinery purchase subsidies are conducive to been a success. And while America distances itself
the burgeoning demand for large, high-end and from China in the name of decoupling, European
intelligent machines like high-power tractors. With and Japanese companies are helping to build
stricter environmental requirements, off-road China’s industrial robots (Foster).
machinery emission standards will be inevitable
upgraded and the technical threshold for industry Nevertheless, China counts more than 800
accession will be raised ever (Cision). robot makers, including major players Siasun and
DJI Innovations. Development of robotics is part of
Robotics an ambitious Made in China 2025 master plan to
upgrade the nation’s manufacturing technologies.
In the debate over the rise of China and the China is on track to account for 45% of all industrial
reindustrialization of America, many claim that robot shipments by 2021, up from 39% in 2019. In
China threatens America’s lead in industrial the past, China has lagged behind other nations in
automation. But that’s plain and simply not the robotic workforces, counting 97 industrial robots
case. Japan and Europe overtook America in the per 10,000 manufacturing workers, half as many
cutting-edge field long ago and they, not China, are industrial robots as the US and one-seventh as
currently the world’s leading suppliers of industrial many as South Korea. Clearly, the virus outbreak
automation equipment. There are many aspects to has put a renewed urgency behind the trend
leadership in industrial automation, but industrial towards increased automation and use of robotics
robots are an indicator of both the sophistication in China. Wages in China are no longer cheap,
and scale of a nation’s manufacturing. China buys and US companies with operations in China have
a lot of industrial robots, but it is not yet a major been hit hard by the virus. Industries that are most
impacted are those with large assembly operations
328
