The new Transformers(3)

However, overseas-made robots still dominate.

Of those 37,000 sold in China last year, only 9,000 were from Chinese suppliers.

Local sales were three times higher than in the previous year, while the sales of foreign suppliers rose 20 percent, the China Robot Industry Alliance says.

But Japanese, European and US producers still accounted for the majority of major contracts, with Chinese products being targeted mostly at middle and low-end users.

"Robots made by Chinese suppliers still lag behind those made by international companies, in terms of quality, technical level and performance parameters," Song says.

"Moreover, core components, which account for more than 60 percent of the whole cost, are mainly bought from international companies."

Song says about 60 percent of the robot population is being used in the automobile industry, meaning huge potential for various other industries.

While automotive demand will also increase, he sees fast growth to come in the computer, communication and consumer electronic industries, as well as food and beverage, biological medicine and the service industries.

"China has many industries that other countries do not have, for example, pottery and hardware manufacture, where huge opportunities exist", he says.

A meeting held at last month's robot show between leading members of the International Federation of Robotics and the China Robot Industry Alliance agreed that while overseas and Chinese companies continue to target different levels of the market, a strong joint effort has to be made to continue developing the local robot sector.

However, the rapid expansion of the industry in China does present worries for some experts.

Li Boji, assistant general manager of GSK CNC Equipment Co Ltd, the Guangzhou-based supplier of advanced machine tools and computer numerical control equipment, says robot use is still new to many of his Chinese customers.

He is concerned that as more Chinese companies dip their toes in the market, there could be an overcapacity of low-end robots, meaning a dramatic fall in prices and quality.

"If first-time buyers opt for low-quality robots that break down frequently, that could hurt the industry's credibility," he says.

"We don't want too many companies entering the market, blindly offering the same types of product. That will hurt the normal development of the industry."

Qu Daokui, president of Siasun Robot and Automation Co Ltd, says the biggest challenge for Chinese companies is how to improve technology and product performance.

Siasun, founded in 2000, is considered China's largest robot company, with a market value of about 19.3 billion yuan. It has 1,000 R&D staff, and invests about 10 percent of its annual income on R&D, Qu says.

"We own the property rights to all our products and technology," Qu says.

"We put dozens of new robots onto the market every year and own the patents to hundreds."

Siasun's products are mainly targeted at the middle and high-end of the market and have been exported to about 13 countries through business partners.

Siasun, with a new international office in Shanghai, entered into agreements with universities and research institutes, and Qu says the company is now looking at possible international mergers or acquisitions.

Stefan Sack, the CEO of the Italian-owned Comau Shanghai Engineering Co Ltd, says companies of all sizes should think carefully before investing in the robot market.

The Chinese market is still short of qualified and experienced robotics engineers, he says.

"There are risks if we overlook that, and just focus on increasing robot manufacturing.

"What needs to be funded is education of technicians to help build this quick-growing market, not building more robot companies."

With this in mind, Nachi (Shanghai) Co Ltd, a Japanese-owned robot manufacturer, launched its first technology center in Shanghai last month, offering professional training and after-sales services, and a venue for new systems experiments.

The center is expected to cost at least a million yuan a year to run, and it says more centers are planned around the country, one of which will be in Guangzhou.

"Our aim is to make sure that wherever our customers are, they can easily find a technology center nearby," says Liu Xiaobing, deputy general manager of the new center.

Li Boji adds that GSK also established a similar center last year, and now employs about 60 technicians offering tailored service to its Chinese customers. It, too, injects more than 10 percent of its income into funding R&D.

"Robotics is a personalized service, and every customer has different requirements and needs different components," Li says.

Song of the China Machinery Industry Federation says that as a third-party association, it wants companies and government departments to maintain a sensible attitude toward the industry.

Its healthy development relies on manufacturers, integrators and users working together, he says.

Given the sheer size of the Chinese market, domestic producers and developers have a huge advantage over international suppliers, he says, in that they understand the varied needs of different industries in China far better than international suppliers.

"They should focus on special areas and niches at this stage, and if they do that well, they are very likely to achieve great success."