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  • Home > News > Details
    Chinese robot wars set to erupt
    2012-12-06

    Established by Sun, an engineer by training, Risong was a pioneer in the introduction of robotics systems in China. However, in the early days the company hemorrhaged money, because the concept of robot workers failed to catch on.

    "Back then, no one was really into robots," Sun recalled. "I was given the cold shoulder every time I tried to promote the products. The response was always: 'We have inexhaustible human labor.' So why bother to use robots?"

    But a change in demographics has helped to open the window of opportunity. China's working-age population is set to shrink and labor costs are likely to spiral upward as a result. That has given a fresh impetus to the development of robots.

    A 2011 census conducted by the National Bureau of Statistics projected that the working-age population will begin to decline in 2013, and the decrease will gather pace after 2020, signaling the end of what has been called "the demographic bonus".

    Recent research conducted by the consultancy Ernst Young LLP suggests that the average annual labor cost per worker rose to more than 40,000 yuan ($6,400) in 2011, from less than 25,000 yuan five years ago.

    Given the context, it's easy to calculate the tradeoffs of getting a robot. "In fact, industrial robots are already cheaper than workers in China's eastern regions," said Wang Tianmiao, who heads the expert panel of robot technology under the State High-Tech Development Plan.

    Wang said a typical industrial robot costs around 300,000 yuan and has annual maintenance costs of 20,000 yuan. The total layout of 500,000 yuan over 10 years is considerably less than that for a 6,000-yuan-a-month technician, and robots can work three times more efficiently.

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