by JIANG Xi

"We plan to expand aggressively overseas in 2026," said SUN Kun, sales director at Shanghai STEP Electric Corp. (002527.SZ).

The Chinese industrial robot maker has identified Southeast Asia as a key market and plans to start with Vietnam as its beachhead, Sun told Jiemian News.

Until now, STEP's robots have largely followed Chinese manufacturers shifting production abroad, with its SCARA and six-axis robots deployed alongside companies such as Foxconn, Biel Crystal and BYD in electronics and new‑energy supply chains. Overseas sales have exceeded 1,200 units annually.

"Previously we expanded overseas mainly by following our clients," Sun said. "Now we want to take the helm ourselves." STEP is building local legal registration and operational capabilities in Vietnam as it shifts from simply entering overseas markets to establishing a deeper local presence.

The shift reflects a broader trend among Chinese robot makers.

Data from China's General Administration of Customs show industrial robot exports jumped 48.7% year on year in 2025, with exports exceeding imports for the first time, making China a net exporter of industrial robots.

According to Zhu Shishui, general manager of the robotics division at MIR, the change is closely linked to the global relocation of manufacturing.

Manufacturing is shifting in two directions, Zhu said — reshoring to developed markets such as the United States and Europe, and relocation to emerging hubs including Southeast Asia, Mexico and Eastern Europe — a trend driving robot suppliers to follow production overseas.

Industrial robots are widely used in sectors such as automotive, electronics, solar and battery manufacturing, and fierce competition at home is also pushing Chinese robot makers to seek growth abroad.

China is already the world’s largest industrial robot market. According to the International Federation of Robotics (IFR) in its World Robotics 2025 report, installations in China reached 295,000 units in 2024, accounting for 54% of the global total. Chinese suppliers now hold 57% of the domestic market, growing faster than foreign competitors.

"After widespread adoption in China, Chinese robot makers have largely caught up with foreign rivals in product performance," Sun said.

Among China's robot segments, collaborative robots have been one of the fastest growing.

JAKA Robotics, a Shanghai-based collaborative robot maker, illustrates the trend. Vice‑president MENG Xiaobo said cooperation with Toyota beginning in 2019 helped the company expand overseas. Toyota later adopted the technology at its headquarters in Japan in 2022, bringing JAKA into its global supply chain. The company has since opened offices in Japan, Germany, the United States and Malaysia.

Chinese robot makers are targeting both developed markets such as Europe and the United States, where regulatory and brand requirements are higher but margins can be greater, and emerging manufacturing hubs including Southeast Asia, Mexico and Eastern Europe, where customers tend to be more price-sensitive and value faster service.

China's manufacturing ecosystem and supply chains give local robot makers another competitive edge. Demand for automation in sectors such as lithium batteries and solar manufacturing first scaled up in China, giving local robot makers extensive deployment experience while helping keep costs competitive.

"As performance approaches that of foreign brands, supply-chain advantages translate into a pricing advantage," Meng said.

Industry observers say Chinese robots are not simply cheaper but easier to deploy and maintain. While many Western systems require highly trained engineers, Chinese robots can often be operated by technicians with vocational training, lowering the barrier to automation for smaller factories.

Chinese companies are also integrating artificial intelligence into robotics. STEP recently launched SYNDA R1, an embodied‑intelligence robot designed to enhance automation performance.

Still, challenges remain. The global industrial robot market has long been dominated by companies such as ABB, Fanuc, KUKA and Yaskawa, and Chinese suppliers still have limited brand recognition in many markets.

In the mid‑to‑high‑end six‑axis robot segment—estimated at around 200,000 units annually—Chinese brands hold only a small share.

"Many customers in Europe and the US have relied on brands such as ABB for decades," Zhu said. "Gaining acceptance for new Chinese brands will take time."

Regulatory barriers also remain significant. While CE certification is required to enter the European market, companies must also meet a range of technical and safety standards in other markets.

Chinese firms are increasingly securing those approvals. Inovance Technology (300124.SZ) has obtained TÜV functional safety certification for its industrial robots.

Despite these hurdles, the overseas push is gathering pace, with companies turning to capital markets to fund global expansion. Estun Automation (002747.SZ) has won approval for a Hong Kong Stock Exchange listing aimed at supporting its global strategy, while Topstar (300607.SZ) is also exploring a Hong Kong listing as part of its international expansion.

"Chinese industrial robots have already proved competitive on cost, speed and customization in the domestic market," Zhu said. "The next stage of growth will come from taking on established global brands."