Industrial robot imports from Japan is becoming increasingly costly for China amidst US-China trade war

The industrial robot industry of Japan has also become one of the sufferers of the trade spat between China and the United States, reflecting just how connected the global supply chain of high technology is.

A decline in profits amidst an economy which is slowing down has seen the manufacturers from China decrease their orders for robots manufactured in Japan, told Ma Shugen in an interview, who is a Professor at Japan’s Ritsumeikan University in Japan.

Maa stated that the trade spat has raised tariffs for Chinese manufacturers, hence the firms are not so willing to do investments in importing new machinery or building a new product.

China is considered to be the greatest importer of industrial robots manufactured in Japan, covering in more than 40 percent share of the export of these robots last year, as per the 2018 report by Mizuho Research Institute.

Overall the exports of the Japan-manufactured industrial robots declined for the 5th consecutive quarter after the 2nd quarter of 2018, according to the report, adding that the rate of decline continues to accelerate.

In the time period of April to June 2019 quarter, there was a reduction of 28 percent in the exports of industrial robots to China year-on-year, as per the September report, which puts the blame on the critical economic environment driven by the trade war between the United States and China, which is resulting in the holdback of investment.

By nearly 7 percent, there was also weakening of yuan against the Japanese yen year-on-year as of August, due to which importing goods from Japan is more costly for the Chinese manufacturers.

The manufacturers of the robot which became a victim of the ongoing United States-China trade war include FANUC which is amongst the largest industrial robot manufacturers in the world.