China supplying artificial intelligence chains edge

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Ubtech human robot transmits a load on a gathering vehicle automatically at a Geekr electrical factory supported by Geely on August 5, 2024, in Ninjo, China’s China Province.

VCG | China Visual Group Gety pictures

This report from this week’s release from the CNBC’s Connection newsletter, which brings you visions and analyzes about what pays the second largest economy in the world. Every week, we will explore the largest business stories in China, and make a decrease in market movements and help you prepare for the next week. Like what you see? You can subscribe here.

The big story

Remember the commercial definitions of American companies how they still depend on Chinese factories.

Now, with more of these factories turning into technology-such as artificial intelligence and robots-for costs and quality controls, it will be difficult to resist the purchase from China. The capabilities of Amnesty International were even manufacturing manufacturing The most prominent of the capitalist capitalist Mary microscope During the weekend in the first Tech Trends technology reports widely followed since 2019.

CEO Ocharie Cohen said Chinese companies are keen to adopt new technologies, and believes the start of Cybord that quality control tools for Amnesty International will find senior buyers in China this year.

Instead of using obstetric artificial intelligence, Cybord applies machine learning subject to overseeing defects based on patterns in its manufacturing database, Cohen said. These defects include fake, defective and packed ingredients. Last month, the startup announced that it is present Integrated in factory management systems From the industrial giant Siemens.

Cohen, who was formerly Vice President of the NVIDIA supply chain, expects geopolitical pressures to diversify supply chains, making Chinese factories more competitive. “The factories will return to China,” he said, but unlike the past decade, China will be a “high quality statement.”

China installed seven times more than the United States in 2023, as it represents more than half of the industrial robots in the world, according to Stanford UniversityQuoting a report from the International Robotics Federation.

However, automation levels are not equal, as some sectors, such as cars, which require fewer human workers, while production lines such as clothes, are largely dependent on people who run by hand machines.

Beijing has ambitious plans to further the country’s factories – in the next five years.

China last month issued “The Business Plan” for the digital supply chain Development by 2030. He called for the use of artificial intelligence, Blockchain and other technologies in manufacturing and agriculture – including a plan to grow 100 digital supply chain leaders.

The country already has the beginning.

“When you think about digital transformations and use digital analyzes of automation in manufacturing, Chinese companies are a real power in the world,” said Carrell Elout, a large partner based in McKinsey.

He pointed out that since the World Economic Forum began and MCKINSEY began tracking Paper factory In 2018, the number of ideal use cases increased to 189, of which 41 % are based in China and spread in multiple industries. It includes the Chinese device maker Midea and Chinese operations for Gealthcare, Astrazneca and Schneider Electric.

The report indicated that some companies, such as the joint HISNSE-Hitachi project in Qingdao, China, use the Trucet to reduce the time it spends in ineffective meetings, instead in directing the following transformation of workers to immediate issues.

Separation of global competition

Elot said that companies are looking for ways to improve productivity, along the way from the supply chain to the consumer, noting that there is a “gap between Haves and Have” in terms of the integration of manufacturing artificial intelligence.

“The competitive forces in China are very strong,” he said. “Companies compete with each other in a very harsh way, I would like to say.”

The nature of this competition was fully offered in recent weeks with another round of cuts in electric cars prices – heavily driving BydWhich already dominates the market and expands strongly in the world.

BYD stated in its 2024 annual report that it had started spreading independent mobile logistics robots for manufacturing. The car company also has Invested in robotics companies.

“Supply chains are very effective and very competitive from the cost perspective … If you want to compete, you should be here” in China, Jens Esclett, President of the European Union Chamber of Commerce in China, The journalists were told last week in Beijing.

He said he was concerned about China’s plans, which could double the self -sufficiency, which could likely push a reaction from its main commercial partners. “If you still want to have a practical relationship with your main commercial partners, you also need to actually circulate,” he said.

The increasing barriers for entry

Other car companies, such as NIO and Geely, also The main focus on their development.

Zhou Ziping, CEO of the CICC Research Institute, said artificial intelligence applications may push even the reorganization of the auto industry. Zhou said that while the challenges are still present in data collection and their storage, artificial intelligence is already used to develop lithium battery materials and chips in China.

On the software side, the Chinese technology giant Alibaba announced a strategic partnership with the SAP business system giant last week. Widespread – which initially focuses on China – includes cloud support for Alibaba for SAP supply chain management systemAnd plans to test the QWEN AI model mebaba model with SAP applications in China.

Glenn, the founding partner of China Insights Consultance, said, although it is still in the early days, the artificial intelligence can quickly create a large number of design solutions, leading to the shortening of time to launch the product. He added that obstetric artificial intelligence can improve the efficiency of equipment maintenance and help companies absorb technical experience more quickly.

“We look forward to next year, it is expected that the integration of artificial intelligence and manufacturing will accelerate,” said Huo in Chinese, translated by CNBC. He pointed out that a set of data, algorithms and cases of use has become a new competitive obstacle to entering companies.

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You need to know

American commercial conversations and China are forgetful. Washington notes that US President Donald Trump and Chinese President Xi Jinping can Speak this weekBut the Chinese Foreign Ministry does not provide any information. And that is after the two countries blamed the other for its violation of the commercial security that was reached in mid -May.

Chinese Defense Secretary Dong John exceeds the Shangri dialogue, not in Singapore. He was The first absence since 2019Although low Chinese officials attended. US Defense Secretary Beit Higseth called for the absence of China, while urging those present at the summit to return to Beijing’s military pressure on the region.

Delivery of Leapmotor and Huawei-Tenfiliate Aito Standard cars in May. New Energy Vehicles brands More than 40,000 cars were delivered Every month, the records were set despite the intensive industry war warfare led by the BYD market. Over the Dragon Boat Festival Long Weekend, Official data An increase of 5.7 % on tourist trips, a 5.9 % increase in related spending a year ago.

In the market

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The performance of the Shanghai complex during the past year.

Chinese stocks and Hong Kong rose on Wednesday, as Asia and Pacific markets tracked a technical gathering in Wall Street, led by the chip maker. Nafidia.

China’s main mainland CSI 300 Add 0.5 % while Hong Kong Hang Singh Fahras – Including major Chinese companies – increased by 0.56 % as of 2.15 pm local time.

The rate of Chinese government bonds for 10 years is 1.704 %.

The Chinese yuan was traded abroad by 0.04 % less against Greenback at 7.190 against Greenback.

Amal Balakishner

Upcoming

June 9: Trade Data, Consumer Prices Index and PPI for the month of May



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