China's robot makers are not very concerned about the high U.S. tariffs because U.S. buyers have practically no alternatives if they want to buy the world's most advanced robots. Han Zhaolin, Founder of Dolphin Robot Technology, said his team had been uncertain about how the escalating U.S.-China trade war – which has seen both sides raise tariffs on each other’s goods by over 120% – would affect sales. But in the end, he had little to worry about. As a fifth-generation product, which boasts nearly 100 patents, the firm’s robotic café faces little international competition, Han said. That has allowed the firm to hold firm in the face of rising U.S. duties. “We aren’t bearing the tariff, nor are we lowering our prices, because U.S. customers have rigid demand,” he said. “There’s nothing like this produced in the U.S., Germany or Japan, and similar products from South Korea cost twice as much.”
Han’s experience reflects a broader trend on display across the ongoing Canton Fair: from skyscraper-cleaning robots to bionic limbs, a wide range of Chinese-made smart products have proved remarkably resistant to the impact of the trade war. In many cases, the systems’ core components are all locally sourced, meaning they are not affected by import duties. They also tend to be priced far lower than rival products in Europe and America – and developed much faster – allowing them to remain competitive even amid sky-high tariffs.
Zhejiang Qiangnao Technology is pressing ahead with bringing its bionic legs and hands – which are controlled by algorithms trained using brain-computer interface research – to the American market in spite of the current tensions. The company’s smart prosthetic limbs have already received medical device certification from the U.S. Food and Drug Administration (FDA) and are covered by the U.S. medical insurance system, said Pan Siyu, a company representative. Priced at USD50,000, they remain competitive in the market at the current tariff level, though that might change if the U.S. were to raise levies even higher, Pan said. “Our company’s smart bionic legs and hands are only one-fifth to one-seventh the cost of similar Western products,” she said. “It all depends on how high the tariffs go. U.S. policies change frequently. We can’t predict how our products will be classified next.”
The “Best of the Best” award at this year’s Canton Fair Design Awards went to a skyscraper-cleaning robot developed by Lindu Intelligent Tech Development, a company based in Guangzhou. Like many of the 90,000 smart products exhibited at the Expo, the robot is a self-developed and effectively unique system. It can be used to clean skyscrapers as high as 500 meters tall, requires no external plumbing, and can remain firmly attached to glass curtain walls even during a force-12 hurricane. “There are very few competitors in the market,” said Chen Sihong, Sales Director at Lingdu. “Other products still require external water pipes and wires, and can only reach about 60 meters.” Lingdu now sells its cleaning robots in more than 20 countries, with exports accounting for up to 80% of its total sales. Buyer interest at the Canton Fair has been strong, especially among those from the Middle East, Chen said.
“Cleaning services are expensive in foreign countries. Cleaning the exterior wall of a building costs about USD2 per square meter, while using our robot costs just CNY2,” he said. “The investment will be paid off with just one or two buildings cleaned. Plus, the robot can operate 24/7 and has a lifespan of up to eight years.” Chen did not directly address the impact of U.S. tariffs on the company’s sales, but stressed that the cost advantages and rapid innovation of Chinese tech products would become even more evident over time, the South China Morning Post reports.
