A 300 Million Won Robot for Just 70 Million... From Counterfeit Alley to Robot Mecca [Inside China’s Humanoid Ecosystem] ①

"300 million won in Korea, 70 million won in China...
A robot comes together in no time with just one round at Huaqiangbei"
"The automotive supply chain fostered robot startups"
Order parts in the morning, receive them in the afternoon

Editor's NoteAt school sports days in Shenzhen, China, it is not unusual to see parents bringing robots. In China, robots have become deeply integrated into daily life, to the extent that a Robot Olympics is held. This phenomenon is supported by an ecosystem that makes it easy to manufacture robots. In Huaqiangbei, Shenzhen, it is possible to source all the components needed to assemble a robot in just one day. These robots are then deployed back into factories and other sites, creating a virtuous cycle that boosts productivity. In contrast, in Korea, robots remain confined to laboratories and prototypes, and the country has yet to even reach the starting line of industrialization. Asia Economy examines the structure and speed of the humanoid robot ecosystem on the ground in Shenzhen, China. As the world is already competing for commercialization, we urgently seek solutions for how Korea must reestablish its industrial strategy to address the challenges it has missed and avoid falling behind.

'Order today, arrive tomorrow: 70 million won for a robot.'

Upon entering the Huaqiangbei Electronics Market in Futian District, Shenzhen, China, every stall was stacked with robot arms, motors, reducers, and sensors. Once known as the "counterfeit electronics street," this area has transformed into a global hub for robot parts, attracting buyers from all over the world. Even just touring a few floors of a single building, there were enough components to quickly assemble a robot. Whether selecting parts in person or ordering online for next-day delivery, Huaqiangbei is a place where the necessary components are always immediately accessible.

The interior view of a store inside the Huaqiangbei Electronics Market in Futian District, Shenzhen City, visited by a reporter on the 18th of last month. It was recently renovated and the interior repairs have been completed. Photo by Park Juni.

"300 million won in Korea, 70 million won in China... One circuit around Huaqiangbei and a robot is ready"

The reporter personally calculated the estimated cost of components needed for a humanoid robot in Huaqiangbei. With verification from the Korea Institute of Science and Technology (KIST), a virtual robot was assembled. On the second floor of Building 1 of the electronics market, numerous shops were selling motors, reducers, microcontroller boards, servo drivers, and screws for robot manufacturing. These components are used in educational robots, drones, quadruped and humanoid robots, among others. Some stores were also selling small, fully assembled robots. In another building, components such as camera sensors and batteries for high-performance robots were available. Touring just one or two floors of two buildings was enough to source all the parts needed to build a robot.

Jin Ikhwa, chairman of the Korea Chamber of Commerce and Industry and an employee of Ewha Semicom, an electronic components distribution company for 20 years, is explaining while touring the Huachangbei component market interior with a reporter on the 18th of last month. Photo by Park Juni.

To build a humanoid robot, you need actuators, reducers, bearings, tactile sensors, hands and joints, and various other sensors. For high-performance parts like tactile sensors and AI chips or computing modules, which were not available on site, searches were conducted on the Alibaba website. Prices varied widely by component type, but based on the prices checked that day, the total estimate for a robot was about 70 million won (the lowest price, based on the average for local mass suppliers). This is about one-quarter of the 200 to 300 million won that Korean robot manufacturers typically spend per robot for research and development. Local Chinese robot manufacturers explained that prices could be even lower if parts are sourced locally or in bulk. Although the robot assembled at this 70 million won price point was not a fully high-performance humanoid, it was sufficient for immediate use in logistics and production processes, such as transporting goods on site.

On the 18th of last month, a reporter visited the Huaqiangbei Electronics Market in Futian District, Shenzhen. This is the scene of an educational robot parts sales company located in the market. Photo by Park Juni.

The customer base included not only Chinese buyers but also a wide range of international buyers. Wendy, CEO of Luehandeanzhi, a company specializing in module-related parts, explained, "It's not individuals, but domestic and foreign companies who purchase robot parts wholesale. Recently, demand from overseas buyers has increased." The main reason foreign buyers flock to Huaqiangbei is the low cost of parts. Years of intense competition among numerous parts suppliers have driven prices down, and recently, the quality of components has also improved. Jin Ikhwa, chairman of the Korea Chamber of Commerce in Shenzhen, who has worked at Ewha Semicom, an electronic components distribution company, for 20 years, said, "There is a saying that if Chinese parts suppliers disappeared, Korean manufacturers would also go out of business."

The exterior view of Huaqiangbei Electronics Market in Futian District, Shenzhen City, visited by a reporter on the 18th of last month. Huaqiangbei consists of 23 shopping mall buildings, including 15 large malls. Photo by Park Joonyi.

"The automotive supply chain fostered robot startups"

A robust automotive supply chain is cited as the key factor behind the rapid growth of China's robot ecosystem. Since the early 2000s, China has emerged as the world's largest automobile market. At that time, the government designated automobiles as a national strategic industry, providing strong support through relaxed joint venture restrictions and subsidy policies. This led to the formation of an industrial supply chain covering every stage from raw materials, parts and modules, to manufacturing and distribution. The network among numerous companies, the resulting segmentation of industrial sectors, and government infrastructure support all combined to complete the ecosystem. Since the robotics industry shares many components with the automotive sector, parts suppliers were able to scale up production by supplying both industries simultaneously, creating an environment where even startups could become part of the ecosystem.

Shenzhen, in particular, is a region densely clustered with IT companies. The tightly woven supply chain ecosystem in Shenzhen is nothing short of a "paradise" for startups. The "Pearl River Delta," which includes Shenzhen, Guangzhou, Dongguan, and Zhuhai, has formed a massive cluster for electronics, robotics, and IT parts. More specifically, manufacturing and parts companies are concentrated in Nanshan District (research, AI, and robot R&D), Bao'an District (motor and parts manufacturing), Longgang District (electronics and parts), Futian District (parts distribution hub), and Guangming District (robotics and smart manufacturing). This is the background for the rapid growth of the robotics industry, even though it is a relatively new sector.

Order parts in the morning, receive them in the afternoon

On the 18th of last month, a reporter visited the Huaqiangbei Electronics Market in Futian District, Shenzhen. This is the scene of a specialized module sales company located in the market. Photo by Park Juni.

Inside view of a store at Huaqiangbei Electronics Market in Futian District, Shenzhen City, visited by a reporter on the 18th of last month. Components such as motors used in robots are on display. Photo by Park Juni.

The massive supply chain that began in Huaqiangbei is now expanding throughout Shenzhen. The shift in distribution methods to online channels, accelerated by the COVID-19 pandemic, has played a significant role. Orders through online platforms such as Alibaba, 1688.com, and DHgate are rapidly increasing. Huaqiangbei has established itself as a vast parts market that spans both online and offline domains.

Nie Xianglu, co-founder of robot company Fasini, which is backed by BYD, said, "If the R&D center needs something, we can call the parts supplier in the morning and, if fast, receive it by the afternoon, or at the latest, the next day. The speed enables rapid product development, and there are tens of thousands of such suppliers concentrated in just the Pearl River Delta and Yangtze River Delta regions." The Pearl River Delta, centered around Shenzhen and Guangzhou, is a global manufacturing hub. The Yangtze River Delta, encompassing Shanghai, Zhejiang, and Jiangsu provinces, is China's largest economic zone and a center of advanced industries.

Large and small robot companies across China design devices by sourcing parts from online platforms or custom manufacturers, then connect with large factories for mass production. In an environment where both the government and companies are actively supporting new industries, even major corporations are deploying humanoid robots in their own factories, even if the robots are not yet fully perfected. Agibot and Unitree received large orders last month from China Mobile Information Technology, and UBTech deployed robots at the Zeekr electric vehicle factory in March.

Jin Ikhwa, chairman of the Korea Chamber of Commerce and Industry, who worked for 20 years at the electronic components distribution company Ewha Semicom, is explaining the Huaqiangbei component market on the 18th of last month. Photo by Park Juni.

Jin Ikhwa, chairman of the Korea Chamber of Commerce, pointed out, "Korea's AI and robotics industries are far behind." There is a growing sense of crisis that if the gap is not closed, humanoid robots could become yet another "lost industry" for Korea.