At the "2017 Siemens China Innovation Summit," Siemens recently announced that Siemens China will lead the company's global R&D efforts for autonomous robots.

The Siemens Group sees a digital future in China. This established German industrial giant is establishing a global R&D center in China. With support from Siemens China, experts from around the world will come together to advance new robot systems and research, human-machine collaboration, and the application of artificial intelligence in machine control.

While EU commissioners and the German Ministry for Economic Affairs were still considering how to better control or even prevent acquisitions of German companies by Chinese high-tech firms, Siemens had already entered into collaborations with these Chinese high-tech companies. Siemens CEO Joe Kaeser stated during discussions on the acquisition of Kuka: "Globalization does not have only one direction; it is time to move east."

△ The federal government is strengthening its veto power over mergers and acquisitions involving non-EU companies and domestic firms. This is also a response to the acquisition of robot manufacturer Kuka by a Chinese company last year.

A year ago, the merger between robot manufacturer Kuka and a Chinese company alarmed the federal government. This is why, when Siemens' CEO Kaeser was previously asked if he intended to use his group's involvement to prevent the sale of German robotics technology, he denied it. Now, following in the footsteps of Kuka, Siemens itself has knocked on China's door. However, there are still many voices of opposition in Germany regarding this plan.

Helping hand from the West

Siemens states that establishing a robotics research center in China is merely a small step taken by a German company to help the world's most populous country build its own industrial system. Many others do not see it this way; they believe Siemens' move is doing favors for others, strengthening the capabilities of Germany's industrial competitors in Asia.

As computer control is increasingly deployed in industrial production, China sees great prospects for rapidly expanding high-tech production. Thus, China sought assistance from the West, and Siemens extended a helping hand.

A Siemens spokesperson explained the reasons for establishing a global robotics research center in China: "The Chinese market is the most dynamic and has the highest demand. We want to be rooted in our customer base."

China has many national-level major plans to support its achievement of a leading position in the global robotics market. Siemens recognized this and decided that it "must establish the research center in China." Siemens has already assigned many employees to work at its global research center in China, where they will maintain constant connectivity with research centers in the United States and Munich.

Strong support from the Chinese government

Siemens' R&D center in China is already one of the largest globally, with a total of 4500 researchers and engineers. Ranking ahead of China are: Germany with 13300, the United States with 5600, and India with 4800.

Siemens Technology Board Member Roland Busch presented the Siemens Group's plans in the megacity of Suzhou, China. He specifically highlighted the strong support from the Chinese government and numerous government-backed projects as the driving forces behind China's national development. His exact words were: "Siemens is heavily investing in China's future, committed to assisting China and its customers on the path to digitalization."

Germans are unhappy: Siemens has moved its most advanced global R&D center to China!

△ Speech by Siemens CEO Joe Kaeser at the Beijing Development Summit.

Busch cited China's national initiatives "2025 Made in China" and "Belt and Road" as examples. In these national initiatives, ten industrial sectors, including aerospace, high-speed trains, electronic mobility technology, and grid expansion, are key focus areas. These sectors are precisely where Siemens excels. In the West, these two policies are already viewed as a declaration of war against industrial powers like Germany.

Siemens' CEO has set "building digital cities" as the primary goal in China, which includes networking traffic management systems, energy conservation and emission reduction, public safety, and reducing air pollution. Siemens is expanding its existing networking with the Chinese government, universities, and companies.

The Chinese side is also concerned about their "privacy" being "pryed into"

It is worth mentioning that Siemens established a "China Cyber Defense Center" in China, which recently received certification from the Ministry of Public Security. Through this measure, Siemens aims to protect itself and its Chinese customers from hacker attacks.

In the West, there has been ongoing discussion about whether China might exploit corporate mergers and acquisitions to pry into Western corporate secrets. In China, however, the discussion is reversed: whether European enterprises might take this opportunity to pry into Chinese trade secrets.

Siemens believes that the Chinese government's future plans constitute an economic stimulus package tailored for China. Siemens CEO Kaeser will also lead his group to focus on the three major areas of electrification, automation, and digitalization.

Subsequent R&D work will also focus on these areas. The Technology Board Member Busch, who has been in office for one year, has reduced the number of future research priorities from 50 to 14. The scope covers artificial intelligence, energy storage, and software simulation.