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China City of Foshan to Invest $488 Million USD in Robotics

Insider Brief

  • Foshan, a major manufacturing hub in southern China, announced two industrial funds worth at least 3.5 billion yuan (US$488 million) and new annual R&D support of 150 million yuan to accelerate its robotics industry, according to the South China Morning Post.
  • Incentives include subsidies for computing power, workforce training, and support for breakthrough projects in core robotics technologies such as sensors, controllers, high-performance motors, lightweight materials, and bionic skin.
  • The city also launched an “AI and intelligent robot industrial alliance” with members including Kuka, Huawei, Hisense, and Huashu Robot, as industrial robot output rose 43.5% last year and China’s robotics market is forecast to more than double to US$108 billion by 2028.

Foshan, a manufacturing hub in southern China’s Guangdong province, is pouring money into robotics as part of Beijing’s broader push to strengthen strategic industries, according the South China Morning Post.

The city announced two new industrial funds totaling at least 3.5 billion yuan (US$488 million) to be professionally managed for robotics investment, SCMP reported. In addition, Foshan will allocate no less than 150 million yuan annually to support research and development, with up to 50 million yuan available per breakthrough project. The funding will target core technologies including controllers, sensors, high-performance motors, lightweight materials, and robotic bionic skin.

The incentives extend beyond R&D. Local companies can apply for “computing power vouchers” covering as much as 30% of cloud and computing rental costs, capped at 500,000 yuan per year. Schools, research institutions, and companies will also be eligible for up to 500,000 yuan annually to train skilled workers and designers for AI-driven robotics applications.

At a press conference, Vice Mayor Liu Jie highlighted Foshan’s growing role in the sector, noting that industrial robot output surged 43.5% last year, the news outlet noted.

Foshan’s initiative brings the city into line with other major Chinese innovation centers such as Beijing, Shanghai, and Hangzhou, which have launched their own robotics support programs. A new “AI and intelligent robot industrial alliance” was also unveiled, bringing together companies including Kuka—acquired by Foshan-based appliance giant Midea in 2016—Huawei, Hisense, and local champion Huashu Robot, which will chair the group.

The event doubled as a showcase for local product launches. Kuka displayed a collaborative robot called iico, boasting repeat positioning accuracy of 0.03 millimeters, small enough to handle precision tasks in electronics and automotive manufacturing, SCMP reported. Huashu Robot introduced a new welding robot powered by AI models developed with Huawei and San Qiao, designed to address a nationwide shortage of skilled welders—estimated at 3.5 million in 2024. The machine can scan parts with 3D vision, extract weld seam data, and plan weld paths autonomously.

Insurance innovation was also on display. The local branch of PICC Property and Casualty launched China’s first “AI and robotics R&D insurance,” covering technical and raw material defects. The government will subsidize up to 5% of premiums, with each policyholder insured for up to 300,000 yuan.

Greg Bock
About the author
Greg Bock

Greg Bock is an award-winning investigative journalist with more than 25 years of experience in print, digital, and broadcast news. His reporting has spanned crime, politics, business and technology, earning multiple Keystone Awards and a Pennsylvania Association of Broadcasters honors. Through the Associated Press and Nexstar Media Group, his coverage has reached audiences across the United States.

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