[Inside China's Humanoid Ecosystem]⑤ "Subsidies and Household Registration for PhDs"... Shenzhen Transforms into an Immigration City to Attract Talent

Government-Led Robot Industry to Foster Over 200 Leading Companies
Growth Driven by Central and Local Government Support
Open Attitudes from Businesses and Consumers, Backed by a Robust Supply Chain

Editor's NoteIt is not unusual to see parents bringing robots to school sports days in Shenzhen, China. Robots have become deeply integrated into daily life in China, to the extent that a Robot Olympics is held there. This scene is possible because an ecosystem that allows for easy robot production supports it. In Shenzhen's Huaqiangbei, it is possible to source all the necessary parts to build a robot in just one day. The robots created in this way are then deployed in factories and other sites, generating a virtuous cycle that boosts productivity. In contrast, in Korea, robots remain confined to laboratories and prototypes. The country has yet to even reach the starting line of industrialization. Asia Economy visited Shenzhen, China, to shed light on the structure and speed of the humanoid robot ecosystem. As the world has already entered a race for commercialization, we examine the challenges Korea has missed and seek urgent solutions for how to revise its industrial strategy to avoid falling behind.

"In Shenzhen, people working in high-tech fields can move into government-owned real estate and industrial complexes."

The creation of a vast robot ecosystem in Shenzhen is largely due to the commitment of the government and local authorities to nurturing talent. Various systems have been established to support ongoing research and entrepreneurship, including access to real estate, living subsidies, and household registration. Wang Minlong, Deputy General Manager of the Shenzhen Robot Industry Association, explained in an interview with Asia Economy on August 19 at the Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences, Nanshan District, Shenzhen, "People working in high-tech fields can receive discounts on rent or receive subsidies."

He added, "When I first came to Shenzhen as a Ph.D. holder, I received a grant of 3 million won. While this amount may not be large for an individual, it is substantial in aggregate." Shenzhen, as a city of immigrants, has also provided subsidies and opportunities for household registration (hukou) to highly skilled talent such as Ph.D. and master's degree holders, following the same logic.

Wang Minlong, Deputy General Manager of the Shenzhen Robot Industry Association, is being interviewed by Asia Economy on the 19th of last month at the Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences, Nanshan District, Shenzhen. Photo by Park Juni.

Government-Led Robot Industry Aims to Foster 200 Application Cases

The Chinese government has played a "priming" role in the development of the robot industry market. After releasing the "14th Five-Year Plan for Robot Industry Development" in 2014, it announced the "Robot+ Application Action Plan" in 2023 to promote robot development and adoption. The plan aims to double the density of manufacturing robots by 2025 compared to 2020, expand the scope of service and specialized robots, and foster more than 200 representative application cases and leading companies. Through these efforts, the government seeks to accelerate the independence and growth of the robot industry and speed up the construction of a manufacturing powerhouse and Digital China.

In line with this trend, local governments are also actively providing support. Guangdong Province operates a system that subsidizes up to 40% of equipment investment costs for robot companies selected for support programs. The scale is significant, with subsidies ranging from a minimum of 3 million yuan (570 million won) to a maximum of 50 million yuan (9.5 billion won), depending on the specific project. Shenzhen, where many robot companies are concentrated, has also introduced its own support measures. The "Intelligent Robot Implementation" action plan announced this year aims to foster 10 robot companies with corporate values exceeding 1 billion yuan (1.9 trillion won) and 20 companies with annual sales exceeding 1 billion yuan (190 billion won). To achieve this, subsidies of up to 60% and up to 10 million yuan (1.9 billion won) are provided. Government-led support is also being extended in Shanghai, Beijing, Suzhou, and districts such as Nanshan, Guangming, and Longgang, further contributing to the expansion of the robot ecosystem.

Chinese Venture Capital Injects Both Capital and Robots

Thanks to the government's leadership in early-stage investment, there has been a surge in active investment from the industry. In particular, Chinese venture capital (VC) firms play a direct role in shaping the industrial ecosystem. "They do not simply invest money. They deploy robots directly in their own factories and industrial sites," he explained. "In essence, they provide an application environment alongside their investment."

Wang emphasized, "China has well-established industrial chains in fields such as smart manufacturing, automobiles, and renewable energy, and all of these chains can be applied to the robot industry." In particular, a multitude of companies are subdivided by field, which increases efficiency, drives down unit costs, and leads to a virtuous cycle that ensures quality.

The vibrant challenges taken on by startups are also a strength of Shenzhen. Small-scale finished goods manufacturers and parts suppliers collaborate, quickly verifying the feasibility of their ideas and growing rapidly based on these results.

The Chinese industry has declared this year as the "first year of robot commercialization." However, Wang clarified, "To be precise, it is not so much the year of commercialization as it is the starting point for mass production." He added, "The development of the robot industry ultimately depends on artificial intelligence (AI), but China's strength lies in its robust manufacturing supply chain. Chinese companies will facilitate the rapid commercialization of AI."

Wang Minlong, Deputy General Manager of the Shenzhen Robot Industry Association, is being interviewed by Asia Economy on the 19th of last month at the Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences, Nanshan District, Shenzhen. Photo by Park Juni.

Shenzhen Robot Industry Association

- An organization established in September 2009 by the Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences, and the first robot industry association in China

- A non-profit organization voluntarily joined by robot-related companies and research institutions based in Shenzhen

- Has 730 member companies in fields such as industrial robots, service robots, educational robots, and special-purpose robots