China Next Winners: Industrial Technologies – From local substitution to globalization

The next phase for China winners is to go global. We examine the globalization journey of Chinese industrial companies and show that two key factors, technology gap and degree of integration, determine the globalization inflection point and pace. We predict that the next wave of overseas "disruption" from China will likely be emerging technologies, such as humanoid / intelligent / commercial robotics, and material processing machines, such as machine tools, injection molding machines and laser cutting / welding equipment. Automation components and industrial robots, due to the complex integration required by users, will likely see steady progress rather than a sudden inflection point. Overseas revenue contribution ranges from <10% to 70%+ across key sectors. Chinese global winners emerge in areas where Chinese companies have closed the gap (such as construction equipment) or are technology leaders when the field is born (such as commercial and humanoid robots). In the same industry, co