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It's started: Robot Uprising Begins as China Turns to Machines to Fill in Gaps in the Workforce

Makeblock’s do-it-yourself kits have made it a major player in the world of robotics – and are helping China reposition itself as a global powerhouse for the industry

BY COCO LIU

1 MAY 2017

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Makeblock’s Jasen Wang. File photo


Growing up in a farming village in central China, Jasen Wang’s childhood was far removed from the worlds of Lego, RoboSapiens and other toys designed to introduce young minds to the world of robotics. It was not until the age of 20 that Wang first put his hands on a robot, as part of a college competition.

“I was amazed by how smart a machine could be,” he recalled.

That epiphany sparked an obsession with robotics that put Wang on the road to creating Makeblock, a five-year-old start up near Hong Kong that now sells millions of dollars worth of do-it-yourself robotics kits and related products.

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mBot, one of Makeblock’s most popular products, allows students to learn engineering and computing by building robots. Photo: Coco Liu

“I always want to make the process of creation easier, so people can turn their ideas into reality without much hassle,” Wang said. “We are now on the way to realising that goal.”

Inside a brand new office tower on the outskirts of Shenzhen, Makeblock’s 1,000-sq-metre R&D centre might be considered a fantasyland for geeks.

Young men and women fix their eyes on computer screens filled with code. Engineers, sitting on the floor and facing the wall, are surrounded by hundreds of mechanical pieces. No one looks up; they are busy putting together robots.

Last year, three new products were born here, including Makeblock’s Airblock, a DIY drone which raised nearly US$900,000 in a Kickstarter crowd-funding campaign in November and earned an internationally recognised Red Dot Design Award.

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A 3D printer made of Lego at the World Robot Olympiad in New Delhi, India. Photo: AP

Wang’s business started as a way for hobbyists to find parts, but has become a construction platform that offers more than 500 pieces, compatible software and building kits. His company claims to have more than 1 million users worldwide and generated a revenue of US$17.5 million last year, a 400 per cent increase from 2013, when Makeblock began production.

Once a one-man company, it now employs some 400 people, with engineers from the Massachusetts Institute of Technology and other top universities.

But Wang’s success goes beyond the company itself – it has also brought his motherland closer to a bigger goal: once the world’s factory floor for low-end products, China is now repositioning itself as a global powerhouse for robotics.

In 2013, China surpassed Japan to become the world’s top market for industrial robots, according to the International Federation of Robotics, an industry group based in Germany.

Will China also become a global leader in robotic innovation and production? “Yes, it is working towards that direction,” said Jan Zhang, an analyst at global market research firm IHS Markit.

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A farmer looks at a drone spraying pesticide in his field in Jixian County, north China’s Shanxi Province. More than 3,000 hectares of apple trees will be protected by drones this year. Photo: Xinhua

After calls by Chinese President Xi Jinping (習近 平) for “a robot revolution”, more than 1,000 robotics firms have mushroomed across the nation, according to a 2016 report by the Ministry of Industry and Information Technology. By contrast, analysts say, the sector was virtually non-existent in China a decade ago.

The Chinese robotics industry has grown larger and more savvy. When Boston-based Robotics Business Review magazine recently ranked the top 50 most influential robotics makers in the world, they selected two mainland Chinese companies – DJI and Siasun – alongside Google and ABB.

DJI is a drone maker in Shenzhen, and Shenyang-based Siasun produces a wide range of robots, from powerful arms used to build cars to an elegant machine guide that can assist shoppers.

“I think robotics is a sector in which China is going to quickly become a global leader,” said Benjamin Joffe, a partner at the Shenzhen office of HAX, a start-up accelerator that specialises in hardware businesses and has invested in several Chinese robotics companies.

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An exhibitor demonstrates the Inmotion R2 vehicle in Las Vegas. Photo: AP

Joffe said Chinese personal transporter brands such as Ninebot and Inmotion were already industry leaders. While Chinese industrial-robot makers still lagged their Western peers, they were “growing fast”, he said.

Such acceleration is a boost for China’s goal to stay competitive in global manufacturing. The nation has long taken advantage of its cheap labour to compete with Western factories, but is losing its advantage as wages increase.

Under pressure from a rapidly ageing population and a shrinking pool of workers, countries worldwide are turning to robots for help. Zion Market Research estimates that the global service robot market will be worth US$24 billion by 2022. The goal for Chinese companies, President Xi said in 2014, was to grab a slice of this multibillion-dollar market.

Business incubators look to China for tech world’s next big thing
Other nations are keen to see such benefits, too. Japan, which has employed hundreds of thousands of robot workers in factories – it even sent a robot to space – has called the industry a key component of its future economic growth. For its part, the European Commission has launched a public-private partnership to pump more than US$3 billion into innovation in civilian robotics. Although US President Donald Trump has yet to unveil how he will “make America great again” with the help of robotics, industry leaders and government advisers have urged him to do so.

But few nations seem ready to match China’s commitments. As part of a push to transform its manufacturing sector, Beijing has armed its robotics industry with money and incentives: one programme lured back Chinese engineers working overseas; billions of dollars were poured into technology parks dedicated to robotics production and related businesses; and despite its ongoing crackdown on capital outflows, green lights have been given to Chinese companies acquiring Western robotics technologies.

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German Chancellor Angela Merkel, Polish Prime Minister Beata Szydlo, Lower Saxony’s State Premier Stephan Weil and former footballer Jens Lehmann look at a KUKA robot. Photo: AFP

One case in point is Chinese appliance manufacturer Midea’s acquisition of robot maker Kuka last year. Shortly after German Chancellor Angela Merkel visited Kuka’s booth at a trade fair – asking, somewhat curiously whether its robots could squeeze lemons – its ownership changed hands. Midea, best known for producing washing machines and air conditioners, bought Kuka for nearly US$5 billion, making it the largest-ever Chinese takeover of a German company.

“With Kuka as the platform, we will work on industrial robots, commercial robots, service robots and artificial intelligence [AI],” Midea said on its website.

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A Kuka robot at an industrial trade fair in Hanover, northern Germany. Photo: EPA

While Western firms such as Lego began producing robot-building kits for children as early as the 1990s, industry players say Chinese brands such as Wang’s Makeblock are catching up.

“One innovation Makeblock has made is to bring robotics into classrooms,” said Zoe He, a business development manager at Microsoft in Shenzhen. “Their products have become a showcase of how to modernise traditional education.”

For instance, teachers who struggle to teach pupils engineering and computing can now make their courses easier to understand with the help of Makeblock’s products. Their user-friendly designs let even beginners assemble robots. Students can then operate what they build via a mobile app, or add a new function using a drag-and-drop programming interface which allows them to learn the fundamentals of coding while playing.

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DIY robots made by students on display in Makeblock’s offices in Shenzhen. Photo: Coco Liu
 
Impressed by the company’s popularity among children, Microsoft partnered with Makeblock to make educational robots in 2015, said He.

The Machines are Coming: China’s role in the future of artificial intelligence
Still, Wang remains unsatisfied. Orders from abroad accounted for 70 per cent of the company’s revenue last year, but he plans to attract more by opening the company’s first sales office in the US and Europe this year, following a recent expansion to Japan. Within three years, said the 31-year-old, “we want to become the biggest educational robotics maker in the world ”. ■

http://www.scmp.com/week-asia/busin...-became-driving-force-chinas-robot-revolution

BUSINESS INCUBATORS LOOK TO CHINA FOR TECH WORLD’S NEXT BIG THING
No longer dismissed as the land of the copycats, China is increasingly attractive to foreign start-up accelerators hoping to nurture the technology giants of the future

BY COCO LIU

10 APR 2017

In 2013, when Zhao Chen was appointed to launch a start-up accelerator in China, his move was met with suspicion among the tech community in Silicon Valley.

“Do you have innovation in China?” was one reaction. “Isn’t China a place where people just copy what Western companies do?” was another. Even at his own company, a San Francisco-based firm whose graduates include the creators of PayPal and Dropbox, it was not rare to hear those questions, he recalled.

Three years later, the landscape is completely different. No longer the land of the copycats, China is now attracting serious attention from foreign incubators and accelerators that want to nurture the technology giants of the future.

Broadly speaking, “accelerators” or “incubators” are businesses that help start-ups quickly advance their development in whatever ways are necessary, from mentoring to finding them partners to helping them pitch their ideas to investors.

The Machines are Coming: China’s role in the future of artificial intelligence
The Plug and Play Tech Centre, where Zhao serves as managing partner for China, recently opened a new office in Beijing, its ninth accelerator in the nation.

Although there is no data available on how many foreign incubators and accelerators are in China, constant grand openings indicate real change.

Last year, ReadWrite Labs expanded to Hong Kong with a mix of international and Chinese start-ups focusing on wearable technologies, brainstorming with each other and getting advice from mentors on how to turn their ideas into reality. ReadWrite Labs said it would launch a similar programme this year in Shenzhen.

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People attend Chinaccelerator's Batch V Demo Day in Shanghai in 2014. The company helps Chinese internet start-ups expand into or out of China. Photo: Life Broadsheets

The desire to cultivate start-ups in China has not only made existing accelerators head east but has also stirred companies to create country-specific accelerators. SOSV, a US$250 million venture capital fund that focuses on accelerating tech start-ups worldwide, established Chinaccelerator in Shanghai. As its name suggests, Chinaccelerator helps Chinese internet start-ups establish themselves in the world, and helps foreign start-ups do the same in China.

“Are there more foreign incubators and accelerators coming to China? The answer is yes,” said Cyril Ebersweiler, a Silicon Valley veteran who co-founded Chinaccelerator and founded HAX, a Shenzhen hardware accelerator that expanded to Silicon Valley.

Ebersweiler said he decided to come to China because it was a global go-to source for cheap supplies and lightning-fast manufacturers, making it an ideal playground for hardware start-ups to build prototypes and move into production.

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A robot performs at the 2016 World Robot Conference in Beijing. What lures some start-ups to China is its consumer-tech potential as the world’s second-largest economy. Photo: Simon Song

Others are lured by the market potential of the world’s second-largest economy. “We want to use our China incubator as a landing pad for international start-ups who want to enter the Chinese market and do business within China,” said Kyle Ellicott, founder of ReadWrite Labs.

There is also a new-found interest in Chinese start-ups in general. After witnessing how Chinese bike-sharing companies convinced commuters in Shenzhen to find and use dockless bicycles via a smartphone app, Ellicott said he planned to add more Chinese start-ups in the mix of his programme. “Innovation is definitely out there,” he said.

That’s the same thought that brought Zhao back to China.

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“There is a sea change in attitude toward China’s ability in innovation,” Zhao told This Week in Asia. “When multinational corporations wanted to find cutting-edge technologies, they used to target European and US start-ups only. But now, they are increasingly looking at China. There is a growing recognition of Chinese technologies.”

And it is not just technology advances that wow foreign accelerators. “Chinese companies are capable of quickly deploying new technologies in the market, probably quicker than anyone else,” Zhao said.

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Construction debris in Zhengzhou, where buildings were demolished to make way for a new high-tech zone. Photo: Imaginechina

To grab a slice of China’s start-up boom, in 2014 Zhao and his team set up their first accelerator in China in Zhengzhou, an industrial city in the centre of the country. Right now, the company runs acceleration programmes in eight Chinese cities with some 300 start-ups, most of which are Chinese enterprises.

One is ZiFiSense, a Xiamen-based enterprise specialising in the internet of things (IoT), the inter-networking of physical objects. For an example of this, imagine sensor-embedded waste containers that send out alerts when they are full.

While the company is confident with its technology, “the biggest barrier we face is a lack of trust from corporates”, said Li Zhuoqun, ZiFiSense’s founder.

But with Plug and Play helping to craft a compelling sales pitch, Li has managed to win contracts from Chinese conglomerates such as Wanda Group. The company has also jumped into overseas markets, shipping products to Europe, Latin America and Africa.

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Cyril Ebersweiler, founder of Shenzhen-based hardware accelerator HAX. Handout photo

“We could still expand to overseas markets even without the support of the accelerator, but we wouldn’t be able to move so quickly,” said Li. “Today we will sign a deal with a company from Southeast Asia – another client brought by Plug and Play.

His words are music to the ears of Chinese leaders. After exporting low-end consumer goods and raw materials for decades, Beijing is eager to sell made-in-China technology instead.

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The wave of incoming foreign incubators will also help China forge an entrepreneurship ecosystem. HAX, the hardware accelerator in Shenzhen, welcomes visitors from abroad almost every day, interacting with local firms and comparing notes. It also frequently hosts events in the city, teaching start-ups how to market their products and sell to the world.

But running a foreign entity in China has its red-tape complications, and Beijing’s policy of internet censorship doesn’t sit well with world-class tech firms.

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Facebook founder Mark Zuckerberg. While progressing, Chinese start-ups have yet to produce the world’s next tech giant. Photo: AFP

“Chinese start-ups still lag their Western peers in technology innovation,” said Zhao. That, combined with the difficulty of finding local mentors and competing with cash-rich Chinese venture capitalists for the most promising start-ups, keeps some accelerators away from China. And unlike Western campuses that served as a breeding ground for Google and Facebook, Chinese universities struggle to create environments that could inspire the next Larry Page or Mark Zuckerberg, he said.

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But during a recent visit to the US, his firm brought back 10 Chinese students – all now working to launch start-ups in China. “After learning from the West for so many years and educating so many engineers, we do believe that Chinese start-ups will no longer be copycats,” said Zhao. “We expect China will close its gap with Silicon Valley over the next three to five years, and then it will probably even surpass Silicon Valley.” ■

http://www.scmp.com/week-asia/busin...ubators-look-china-tech-worlds-next-big-thing
 
Smart traffic: China introduces lane-changing robots to ease infamous gridlock
Published time: 3 May, 2017 07:44

Shenzhen traffic police have introduced a new army of ‘lane robots’ along Shennan Road, the city’s major east-west thoroughfare, to ease rush-hour traffic by controlling a section of reversible lanes.
“A team of officers manually directed traffic in this way in December and congestion was noticeably eased,” Wang Le, head of the city’s traffic police, said as quoted by The South China Morning Post.

The system removes the need to have human police officers present for long periods during the morning and evening rushes, but once again displays the threat to employment posed by robots.

The technology has already had a dramatic impact, reportedly ending the morning rush hour a full hour earlier than usual.

The mechanization of traffic control in China hasn’t been exclusively applied to cars, however. In Wuhan, the capital city of the Hubei province, authorities have installed automatic gates, similar to turnstiles at a metro station, at major pedestrian crossings to prevent jaywalking.

The gates are linked directly to the vehicle traffic light system and open and close depending on the color displayed, reports the China News service as cited by The Morning Post.
 
Jia Jia, an interactive robot that looks like a real Chinese young woman in traditional outfit, talks through internet with Kevin Kelly on screen, founding executive editor of Wired magazine, in Hefei, capital of east China's Anhui Province, April 24, 2017. Jia Jia was invited as a special reporter of Xinhua News Agency to conduct the man-machine dialogue with Kelly on Monday. Jia Jia was unveiled in 2016 by a robot research and development team at the University of Science and Technology of China in Hefei. It took the team three years to research and develop this new-generation interactive robot, which can speak, show micro-expressions, move its lips, and move its body. (Xinhua/Guo Chen)

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4th China Robot Summit kicks off in E China's Zhejiang
Source: Xinhua| 2017-05-16 22:39:22|Editor: Song Lifang

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A robot plays go game, also known as Weiqi in Chinese, with a visitor during the fourth China Robot Summit in Yuyao, east China's Zhejiang Province, May 16, 2017. The two-day China Robot Summit, displaying a variety of artificial intelligence technologies and service robots, kicked off here on Tuesday. (Xinhua/Huang Zongzhi)

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Photos of a holographic intelligent robot.

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A visitor experiences an intelligent nursing robot.

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A staff worker demonstrating mind-controlled medical bed.

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A visitor looks at an automatic trashcan.

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A robot makes ice cream at a robot experience center.

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Visitors experience a virtual reality game


http://news.xinhuanet.com/english/2017-05/16/c_136289606.htm
 
Don't worry bro, the problem is not going worldwide but highly concentrated in very few regions. The top 5 markets (China, South Korea, Japan, US, Germany) of industrial robots accounts for 75% of world market in 2015, further increase from 70% from previous year. According the IFR forecast, China (Mainland, excluding Taiwan which is world's 6th largest) alone will account for 40% of world total in 2019-2020.

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Though already largest in aggregate robotics numbers, China is yet to grow in terms of robotics density (49 robots installed per 10,000 workers by end 2015). World's highest is South Korea (531), followed by Singapore (398) in 2nd, Japan (305) in the 3rd, Germany (301) in the 4th. China will have to close the gap with these smaller but very advanced industrial powers.

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http://www.ifr.org/fileadmin/user_u...ecutive_Summary_WR_Industrial_Robots_2016.pdf

https://defence.pk/pdf/threads/its-...-in-the-workforce.424300/page-11#post-9104475
That's actually very interesting, thanks for posting that.

Don't you think that with China rapidly making gains, this trend may reverse?
 
That's not necessarily true, and if it is, it won't be for long.
------This is no longer the case, as technological progress isn't slow anymore, and is only becoming faster, Simply put, humanity no longer has the luxury of time to find replacement jobs.


it is hard to make you understand what i am saying since your economics are based on "typical western books" whereas mine is based on "Chinese economics".

simply put, Chinese companies and their consumers are in the same family, while the western companies and their consumers are separated.that is the difference between socialism and capitalism.
 

it is hard to make you understand what i am saying since your economics are based on "typical western books" whereas mine is based on "Chinese economics".

simply put, Chinese companies and their consumers are in the same family, while the western companies and their consumers are separated.that is the difference between socialism and capitalism.
Yeah, the laws of mathematics don't suddenly change, due to geographical location.
 

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