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Straits Times
2 days ago
- Business
- Straits Times
As global supply chains shift, China's exports of factory robots see a sharp rise
Sign up now: Get ST's newsletters delivered to your inbox – As new factories spring up in South-east Asia and elsewhere in a global rejig of supply chains, made-in-China robots that staff production lines and handle logistics are rolling out with them. Shipments of factory robots from China – including robots produced there by foreign manufacturers – have risen every year since the Covid-19 pandemic, nearly tripling in value from 2020 to reach US$1.13 billion (S$1.45 billion) in 2024. Exports for the first half of 2025 hit US$746 million, a year-on-year growth of almost 60 per cent, according to figures from China's General Administration of Customs. The top three destinations were Vietnam, Mexico and Thailand, The Straits Times' calculations show . 'The sharp rise in shipments (to these countries) underscores the ongoing shift of manufacturing capacity away from the mainland,' said Dr Dan Wang, China director at consultancy Eurasia Group in Singapore. She added that the bulk of such exports were lower-end models for the automotive and electronics sectors. Trade tensions, rising costs and a pursuit of supply chain resilience have prompted both Chinese and foreign firms to diversify production away from the 'factory of the world'. The relocation of supply chains represents a business opportunity for Chinese industrial robot-makers in a market dominated by Japanese and European incumbents, said Mr Su Lian Jye, chief analyst at Singapore-based technology research firm Omdia. 'If a Chinese company is expanding overseas, they will bring their local supplier (of factory robots) along as well,' he said. Top stories Swipe. Select. Stay informed. 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'When we first set up a branch in Thailand in 2021, our first customer was a Chinese carmaker,' said Mr Zhao Chen, chief executive of the company's Asia-Pacific headquarters in Singapore. The client, which had previously used Siasun's robots in China, engaged the company to outfit its new production line in Thailand. Some foreign companies that had used Siasun's robots in China also placed subsequent orders for their overseas factories in places including Malaysia, Singapore and Germany, boosting the company's sales, Mr Zhao told ST. Siasun's products includ e automated guided vehicles that can move goods around factories, warehouses and ports, as well as robotic arms which can move along six axes to perform tasks like car welding. The company's exports nearly tripled from 2020 to reach 507 million yuan (S$90.7 million) in 2024, according to its earnings statements. Over at Jaka Robotics in Shanghai, vice-president Liz Chang said her company has gained 'significant market opportunities' as more industries move into South-east Asia, leading to demand for fresh production capabilities. A number of its major clients in China, including Japan's Toyota, the US' Flextronics and China's Luxshare Precision, have factories in South-east Asia, she said, and the company – which opened an office in Malaysia in 2023 – sees the region as a key export market. Jaka's collaborative robots – robots that can work safely alongside humans – have been put to work in factories in South-east Asia that make car parts, electronics, food and beverages, and more, she added. Outbound direct investment by Chinese firms in South-east Asia surged 34.7 per cent year over year in 2023, according to the Commerce Ministry's figures. The manufacturing industry was the largest recipient . Omdia's Mr Su said the international market for industrial robots is still dominated by Japanese and European firms, whose advanced robots are integrated with clients' systems and prized for their reliability and precision. But Chinese robot-makers are gradually gaining a larger slice of the pie, helped by their competitive pricing, he said. By his estimate, China's industrial robots cost about 30 per cent to 35 per cent less than those made by its foreign competitors. Companies making robots and their components have mushroomed in China, as the country in 2015 mounted a push to become a production hub in this and other high-tech industries. Today, it has more than 930,000 companies in robotics-related fields, according to figures cited by state media in August 2025. The output of industrial robots has also surged: China produced some 369,316 units in the first half of 2025, up 35.6 per cent year on year, official figures show. China itself is the world's largest market for industrial robots, but fierce domestic competition has also driven Chinese robot-makers to venture abroad. One such firm is Speedbot Robotics, a Changsha-headquartered company that makes intelligent industrial robots, including one that can scan and detect spray-painting defects in car factories. 'We are looking to expand to areas such as South-east Asia, where the automotive manufacturing industry is growing,' said Mr Wei Xinghua, deputy sales director at the company, which already sells such robots to Canada. Another is Fairyland Technology from Wuhan, which intends to start selling its robots overseas in the second half of the year, said sales engineer Gong Jiawei. He added: 'We have pretty much sold to every domestic client we can possibly get, and we've appointed and trained dedicated staff to serve the foreign market. 'We are ready to go big overseas.'


Perth Now
4 days ago
- Business
- Perth Now
Xi orders rescue after floods kill 10 in China's Gansu
China's President Xi Jinping has ordered "all-out" rescue efforts after flash floods triggered by torrential rain killed 10 people and left 33 missing in the northwestern province of Gansu. Central parts of Gansu including cities of Lanzhou, Linxia, and Baiyin, experienced heavy rainfall on Thursday night, triggering landslides with mud and debris covering roads and leaving people stranded, state broadcaster CCTV intense rainfall also damaged power and communications in the Xinglong mountain area, stranding over 4000 people across four villages and more than 1300 Friday, 195mm of rain was recorded in the Xinglong area, according to Lanzhou local has suffered weeks of atmospheric chaos since July, battered by heavier-than-usual downpours with the East Asian monsoon stalling over its north and south. Weather experts link the shifting pattern to climate change, testing officials as flash floods displace thousands and threaten billions of dollars in economic losses. On Tuesday, Beijing allocated more than one billion yuan ($A213 million) in disaster relief for Guangdong and the northern province of Hebei, as well as the capital, Beijing, and the northern region of Inner Mongolia, state news agency Xinhua said, including subsidies for damage to grain-growing areas. "The rains will drive up prices for fresh fruits and vegetables," said Dan Wang, a China expert at Eurasia Group. While some farmers might be able to exploit the situation to their benefit, agricultural losses would hit incomes as a whole, she added. Even e-commerce may not be immune, as a landslide north of Guangzhou early on Wednesday hit 'Taobao Village', a community where many households run shops on China's Alibaba platform, trapping 14 people, with half the number still missing. Across the province, 16 rivers threaten to breach their banks, with water levels at two sites reaching their highest since 2017 and 2018. But the worst may be yet to come, with two to three typhoons expected to strike in August, emergency management authorities. The city of Foshan west of Guangzhou has been the epicentre of the province's chikungunya outbreak, while at least a dozen more have reported infections, which typically cause fever and severe joint pain, though deaths are rare. The next few weeks are especially daunting for disease prevention and control, say provincial authorities, after the flood season, worsened by typhoons and heavy rain, boosted mosquito activity. Spread by the bite of infected Aedes mosquitoes, global infections of the disease number at least 240,000 this year.


The Star
6 days ago
- Climate
- The Star
Monsoon rains bring mudslides and disease
Record rainfall: A file photo of residents wading through debris along a flood-hit street in Huaiji County, Guangdong province in June. Southern provinces are experiencing the heaviest seasonal rainfall since 1884. — AP Rescue crews raced to clear debris and flooded roads as southern China braced for more extreme rainfall and spreading infection after some of the worst downpours this century, brought by a peak in East Asian monsoon rains. Forecasters warned of more thunderstorms after the century's second-heaviest August rains pounded Guangzhou, the capital of Guangdong province, forcing its Baiyun airport, one of the world's busiest, to cancel 363 flights and delay 311. The day before, the skies above Hong Kong and the high-tech cities of China's Pearl River Delta turned livid and dumped the heaviest August rainfall since 1884 on the Asian financial hub. Rescue teams in Guangdong scrambled to open drains and pump water away from urban areas yesterday as the intense rain set off mudslides and felled trees on highways, ripping up roads to expose cabling and other infrastructure. Video images showed roads transformed into brown waterways, threatening to worsen a major outbreak of chikungunya, fuelled by mosquitoes thriving in stagnant flood water, which had been on a downtrend before the latest rains. Guangdong had reported more than 7,000 of the virus infections earlier. China has suffered weeks of atmospheric chaos since July, battered by heavier-than-usual downpours with the East Asian monsoon stalling over its north and south. Weather experts link the shifting pattern to climate change, testing officials as flash floods displace thousands and threaten billions of dollars in economic losses. On Tuesday, Beijing allocated more than 1 billion yuan (RM588.4mil) in disaster relief for Guangdong and the Hebei province, as well as Beijing, and the northern region of Inner Mongolia, news agency Xinhua said, including subsidies for damage to grain-growing areas. 'The rains will drive up prices for fresh fruits and vegetables,' said Dan Wang, a China expert at Eurasia Group. While some farmers might be able to exploit the situation to their benefit, agricultural losses would hit incomes as a whole, she added. Cold chain storage providers could benefit, she said, while higher prices could sustain consumer prices, after the latest data showed the first rise in five months. Even e-commerce may not be immune, as a landslide north of Guangzhou early yesterday hit 'Taobao Village', a community where many households run shops on China's Alibaba platform, trapping 14 people, with half the number still missing. Across the province, 16 rivers threaten to breach their banks, with water levels at two sites reaching their highest since 2017 and 2018. But the worst may be yet to come, with two to three typhoons expected to strike this month, emergency management authorities said on Tuesday. — Reuters


Bloomberg
30-07-2025
- Business
- Bloomberg
US-China Relationship Probably at Its Peak, Eurasia Group Says
Eurasia Group's Dan Wang says recent talks between Beijing and Washington mean we're "probably looking at the peak US-China relationship." She says "sentiment is warming up" but notes that the "relationship can deteriorate very quickly next year." Wang also tells Bloomberg Television that China might "get more concessions from the US" when it comes to tariff negotiations. (Source: Bloomberg)


DW
15-07-2025
- Business
- DW
China's economy grows 5.2% in Q2 despite US tariffs – DW – 07/15/2025
This year's first-half growth was boosted by government stimulus and a temporary pause in the US-China trade war, which allowed exporters rush out shipments ahead of new tariffs. China's economy grew 5.2% year-on-year in the second quarter of 2025 amid ongoing trade tensions with the United States, official data showed on Tuesday. The second quarter growth was slightly below the 5.4% pace in the first, but keeping on track to meet the government's full-year target of "around 5%." The first-half performance was supported by state stimulus and a pause in US-China trade war escalations that allowed exporters to rush out shipments ahead of potential tariff hikes. "China achieved growth above the official target of 5% in Q2 partly because of front loading of exports," said Zhiwei Zhang, chief economist at Pinpoint Asset Management. Analysts, however, warn that the growth may not be sustainable. Weakened consumer confidence, falling prices, and a deepening property crisis continue to weigh on demand. "The real estate crisis remains a major medium-term drag on local government budgets," said Dan Wang, economist at the Eurasia Group. Investors, meanwhile, are bracing for a weaker second half even as additional stimulus are expected to be considered at the upcoming Politburo meeting in July. At the same time, according to economic research and consulting firm Prognos Institute, Chinese companies now account for 16% of global exports, double that of Germany, raising the stakes in an increasingly competitive global trade landscape. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Tensions are simmering between Washington and Beijing as the two nations clash over a range of issues, including Taiwan, emerging technologies and most importantly, trade. Escalating trade tensions, US President announced 145% tariffs on Chinese goods in April. However, negotiations between the two significant economies in May led to lowering of US tariffs to 30% for 90 days to allow for talks, while China also reduced its taxes on US goods from 125% to 10%. US-China competition is already substantially impacting global economy and politics. If the trade war between the two escalates once again, China might try to use the EU market to absorb Chinese production overcapacity. In turn, the US could also redefine goods manufactured in the EU through Chinese direct investment as Chinese products and demand higher levies from EU businesses. Meanwhile, as the US tightens trade restrictions with some Latin American countries, China is expanding its influence across South America.