Robot wars heat up as foreign companies enter

"They need to understand not only the robotics industry, but the industry in which the robots are being used. This could affect the migration of talent because if the automotive industry needs more technicians, a technician from the food industry can't just be moved there. This could also be a challenge for the industry's development," he said.

Qu said when people talked about robots in the past, they thought more about industrial robots, but robots are used in many areas including healthcare, aviation and the service industries.

He said that compared with Western companies, most Chinese companies lack key technology, components and parts. Nor are the companies large enough to compete with the West. But the level of robot ownership in China also means there is huge market potential.

Wu Hongxin, from the Chinese Academy of Social Sciences, said Chinese companies and research should make more efforts to be innovative in order for Chinese robots to be more competitive in the marketplace.

"We cannot just make an effort in academic areas, we should also improve the performance and reliability of our products," he said.

Li Xiaodong, secretary-general of the China Association for Mechatronics Technology and Application, said China's demand for robots should also bring greater innovation. "It is a way of ensuring our robots have Chinese characteristics."

Qu said China's robotics market is wide open and poses opportunities for Chinese and foreign companies. But, as China's robotics industry is still evolving, it could be difficult for domestic firms to compete.

"Western robotics companies have decades of experience and more advanced technology. Chinese robotics companies have only been around for a few years and previously they could develop gradually inside the Chinese market. Now, with China becoming the main battlefield, their growth time is shorter and they have to meet world competitors before they are ready."

Qu said there will be industry upheaval in the Chinese market during the next five to eight years. Strong companies will survive, while weaker ones will probably die.

Innovation is crucial in order to guarantee a company moves up the industrial food chain, rather than getting kicked out, he said.