High demand for robots in China but too many robot makers

ROBOT MANUFACTURER OVERSUPPLY: A staff member stands next to robots at a plant of Kuka Robotics.

China wants domestic companies to buy more locally made robots to lift productivity, but industry insiders have warned its policies are over-stimulating the market and that robot manufacturers were "coming up like mushrooms."

Government officials, worried that productivity growth may have turned negative since 2009, see the promotion of automation as a policy that will increase efficiency. Chinese manufacturers, struggling with increasing costs of labour, also favour more use of robots where possible.