While Asia in general is putting pressure on domestic robot and machine manufacturers, it also offers opportunities for innovative German technology providers, which the Chinese can use to raise their products to a higher level. Chinese robot and machine manufacturers need high-quality and certified components, especially for export, in order to be competitive in the international markets. German manufacturers definitely have an opportunity here to raise Chinese products to the required level, for example when it comes to the demanding safety of collaborative robots.

The fact that German manufacturers are currently receiving more demand from abroad than from within Germany shows that the products are still competitive, at least in terms of function, performance and quality. Conversely, however, it must also be acknowledged that Chinese manufacturers are now supplying very attractive and high-quality products, see electromobility. However, unlike consumer products, capital goods such as robots also depend on long-term reliability, and the Chinese have not yet proven that they can do this without using technology from Europe and the USA.

However, Chinese manufacturers are generally simply faster and also more daring - and are strongly supported financially. Contrary to popular belief, this is not primarily about subsidies from the central government. Instead, companies are exposed to much stronger competition than we are used to in the West. They also benefit from a very lively and potent market of private investors who are more willing to take greater risks and make large sums of money available. In addition, the various regions in China are competing for the best location conditions, which can also be linked to subsidies or state investments.

"Without innovation, you are quickly left behind as a provider"

Basically, the robotics market has a completely different pace than traditional mechanical engineering and other traditional German industries. Things move at a rapid pace here and without innovations, suppliers are quickly left behind. These cost money. Money that many German companies are unable or unwilling to invest.

I can understand the calls for German politicians to reduce bureaucracy, and we have a lot of work to do to become more competitive again as a business location. But this is only part of the problem. There is generally no lack of money in Germany and Europe, but it is not being used. The only really functioning charging network worldwide, which was set up by the formerly almost bankrupt start-up Tesla instead of the then relatively rich German automotive industry, is an exemplary reminder of this. Wherever large sums of money flow in Europe, it is actually always foreign investors who take the risk.

In addition, we still very often see in Germany that the exchange between universities or research and medium-sized companies is a highly formalized process. Again, there are technology transfer offices that never really do anything; research and cooperation projects that in reality only serve the purpose of obtaining funding. In technologically successful countries, the process is much more dynamic: ambitious students become outstanding entrepreneurial talents who first work on cutting-edge projects and are then taken on by the most capable companies together with their IP or already cooperate with them as postdocs and are therefore later supported as founding teams by investors with pre-seed sums that people in Germany dream of in the late-stage sector.

It is true: the price pressure coming from Asia in robotics and automation is real - as in other sectors such as the automotive industry. The only way out is to offer better solutions with ambition, risk diagnostics and innovation, which the market demands and is prepared to reward with healthy prices. That works. But be careful: if you succeed, the Chinese will be hot on your heels again. Then you have to be one step ahead again.