Tuesday, August 09, 2016

China's Debt_ China’s robotics industry provides lesson in out-of-control debt

The Japan Times



A robot is presented at the Wuhu robotics center in China on June 30. | REUTERS

Business / Tech

China’s robotics industry provides lesson in out-of-control debt

by Nathaniel Taplin
Reuters

Aug 4, 2016
Article history

WUHU, CHINA – Down a side street bracketed by massage parlors and cheap hotels in this city on the banks of the Yangtze River, a humanoid food service robot trundles around the corner of a table in a cafe, red eyes flashing in tune with synthesized classical music.

The Wuhu Hands On Cafe’s waiter, named “Hero,” has no customers on a drizzly Friday morning. He is, though, a symbol of Wuhu city’s hopes of becoming a major center for robotics, and the local government’s ability to chase that dream through the debt markets, whether it makes commercial sense or not.

“Hero” was the result of six months research at a nearby robotics park that has cost 2.2 billion yuan ($332 million) to establish. For the park’s next stage, including a hotel, an exhibition center and a cultural plaza, Wuhu is raising another 1.2 billion yuan through a so-called local government finance vehicle (LGFV), and offering a raft of incentives for firms to set up there.

READ MORE: http://www.japantimes.co.jp/news/2016/08/04/business/tech/chinas-robotics-industry-provides-lesson-control-debt/#.V6m5Q7VNjE8


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