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Business Standard
24-04-2025
- Business
- Business Standard
Why the world can't stop buying Chinese robots despite trade war
Chinese tech companies are selling robots around the world, even with the ongoing trade war. At the Canton Fair in Guangzhou, one of the country's biggest trade shows, buyers are lining up to see robot cafes, cleaning machines, and smart prosthetic limbs, reported The South China Morning Post. One popular display shows two robotic arms making lattes at an automated cafe. In just the first two days of the event, the machine has already brought in 8 million yuan (US$1.1 million) in orders. The robot cafe is made by Dolphin Robot Technology. Founder Han Zhaolin said they didn't expect such a big response. 'To our surprise, the enthusiasm from buyers this year has been overwhelming,' Han said. 'Buyers from Vietnam to the Middle East showed a strong willingness to purchase on site.' Even though the US and China have raised tariffs on each other's products by more than 120 per cent, Han said it hasn't hurt sales. Their robot cafe, now in its fifth generation, has nearly 100 patents and faces little competition globally. 'We aren't bearing the tariff, nor are we lowering our prices, because US customers have rigid demand,' he said. 'There's nothing like this produced in the US, Germany or Japan, and similar products from South Korea cost twice as much.' Robots stay strong despite tariffs Han's story is part of a bigger trend at the fair. Many Chinese smart products are still doing well in global markets, even during the trade war. That's because most of their parts are made in China, so they don't get hit by extra taxes. Also, they are usually cheaper and faster to produce than similar products in other countries. Smart bionic limbs enter US market Another Zhejiang-based company of China, Zhejiang Qiangnao Technology, is working to bring its high-tech bionic arms and legs to the US. These smart limbs are powered by software that learns from the brain. 'Our company's smart bionic legs and hands … are only one-fifth to one-seventh the cost of similar Western products,' Pan Siyu, a company representative, told The South China Morning Post. The products already have approval from the US Food and Drug Administration (FDA) and are included in the US medical insurance system. They cost about $50,000, which is still affordable for the market. But Pan said that could change if tariffs go up again. 'It all depends on how high the tariffs go … US policies change frequently. We can't predict how our products will be classified next,' Pan added. Award-winning robot cleans skyscrapers Lingdu Intelligent Tech Development, a company based in Guangzhou, won the top prize at the Canton Fair with its skyscraper-cleaning robot. The robot can wash buildings as tall as 500 metres, doesn't need water pipes or wires, and can hold tight even in hurricane-level winds. 'There are very few competitors in the market,' said Chen Sihong, sales director at Lingdu. 'Other products still require external water pipes and wires, and can only reach about 60 metres.' The robot is already sold in over 20 countries, and international demand is high. Buyers from the Middle East are especially interested because of the cost savings. 'Cleaning services are expensive in foreign countries. Cleaning the exterior wall of a building cost about $2 per square metre, while using our robot costs just 2 yuan ($0.27),' Chen said. 'The investment will be paid off with just one or two buildings cleaned. Plus, the robot can operate 24/7 and has a lifespan of up to eight years,' Chen mentioned. Robot cafe saves space and cuts costs The robot cafe from Dolphin Robot is small—just 2.5 square metres—but powerful. It can make more than 50 types of drinks, like coffee, milk tea, matcha, and chocolate. Each drink takes just 50 seconds, and can be adjusted by size, sweetness, temperature, and strength. The machine also saves a lot of money. It can be controlled using a smartphone, fixes 90 per cent of its own issues, and can run for 10 years without needing staff. 'A single smartphone can remotely manage the entire robot cafe,' Han said. 'It can self-repair 90 per cent of malfunctions, operate continuously for 10 years without the need to hire anyone, and the monthly electricity cost is only 300 to 500 yuan – less than 5,000 yuan a year.' 'In contrast, a typical cafe in the US pays over 10,000 yuan per month just for electricity.' Han also believes the trade war is actually helping interest in Chinese technology.
The Star
24-04-2025
- Business
- The Star
Why China's robot makers are unfazed by US tariffs: 'We're the only supplier'
At China's largest trade expo, a group of buyers crowds around an automated cafe, watching eagerly as a pair of robotic arms fixes a latte. The robotic cafe has already racked up orders worth 8mil yuan (RM4.82mil or US$1.1mil) over the first two days of the Canton Fair in Guangzhou – more than its makers had dared to expect. 'To our surprise, the enthusiasm from buyers this year has been overwhelming,' said Han Zhaolin, the founder of Dolphin Robot Technology. 'Buyers from Vietnam to the Middle East showed a strong willingness to purchase on site.' Han's team had been uncertain about how the escalating US-China trade war – which has seen both sides raise tariffs on each other's goods by over 120% – would affect sales. But in the end, he had little to worry about. As a fifth-generation product, which boasts nearly 100 patents, the firm's robotic cafe faces little international competition, Han said. That has allowed the firm to hold firm in the face of rising US duties. 'We aren't bearing the tariff, nor are we lowering our prices, because US customers have rigid demand,' he said. 'There's nothing like this produced in the US, Germany or Japan, and similar products from South Korea cost twice as much.' Han's experience reflects a broader trend on display across the Canton Fair: from skyscraper-cleaning robots to bionic limbs, a wide range of Chinese-made smart products have proved remarkably resistant to the impact of the trade war. In many cases, the systems' core components are all locally sourced, meaning they are not affected by import duties. They also tend to be priced far lower than rival products in Europe and America – and developed much faster – allowing them to remain competitive even amid sky-high tariffs. Zhejiang Qiangnao Technology is in just such a position. It is pressing ahead with bringing its bionic legs and hands – which are controlled by algorithms trained using brain-computer interface research – to the American market in spite of the current tensions. The company's smart prosthetic limbs have already received medical device certification from the US Food and Drug Administration and are covered by the US medical insurance system, said Pan Siyu, a company representative. Priced at US$50,000 (RM219,275), they remain competitive in the market at the current tariff level, though that might change if the US were to raise levies even higher, Pan said. 'Our company's smart bionic legs and hands ... are only one-fifth to one-seventh the cost of similar Western products,' she said. 'It all depends on how high the tariffs go ... US policies change frequently. We can't predict how our products will be classified next.' The 'Best of the Best' award at this year's Canton Fair Design Awards went to a skyscraper-cleaning robot developed by Lindu Intelligent Tech Development, a company based in Guangzhou. Like many of the 90,000 smart products exhibited at the expo, the robot is a self-developed and effectively unique system. It can be used to clean skyscrapers as high as 500 metres tall, requires no external plumbing, and can remain firmly attached to glass curtain walls even during a force-12 hurricane. 'There are very few competitors in the market,' said Chen Sihong, a sales director at Lingdu. 'Other products still require external water pipes and wires, and can only reach about 60 metres.' Lingdu now sells its cleaning robots in more than 20 countries, with exports accounting for up to 80% of its total sales. Buyer interest at the Canton Fair has been strong, especially among those from the Middle East, Chen said. 'Cleaning services are expensive in foreign countries. Cleaning the exterior wall of a building costs about US$2 (RM8.77) per square metre, while using our robot costs just 2 yuan (RM1.20 or US$0.27),' he said. 'The investment will be paid off with just one or two buildings cleaned. Plus, the robot can operate 24/7 and has a lifespan of up to eight years.' Chen did not directly address the impact of US tariffs on the company's sales, but stressed that the cost advantages and rapid innovation of Chinese tech products would become even more evident over time. Dolphin Robot's automated cafe, which takes up only 2.5 square metres of floor space, is able to make more than 50 kinds of drinks, including a range of coffee, milk tea, matcha and chocolate beverages. Each cup takes only 50 seconds to prepare, and can be customised by size, strength, temperature, sweetness, and ice level. For Western buyers, a major attraction of the system is its low operating cost, according to Han. 'A single smartphone can remotely manage the entire robot cafe,' he said. 'It can self-repair 90% of malfunctions, operate continuously for 10 years without the need to hire anyone, and the monthly electricity cost is only 300 to 500 yuan (RM180 to RM301) – less than 5,000 yuan (RM3,010) a year.' 'In contrast, a typical cafe in the US pays over 10,000 yuan (RM6,020) per month just for electricity.' In some ways, the trade war may even represent an opportunity for the company, Han added. 'It's not a bad thing,' he said. 'It makes many foreign buyers more interested and more willing to try China's new generation of tech products. That's one of my biggest takeaways from this year's Canton Fair.' – South China Morning Post
