Last night, I had a chat with a friend in Japan, who revealed a surprising piece of news.
He said that recently, the factory automation sector—long regarded as the representative of "physical AI" in Japan's stock market—has been struggling. Two veteran industry leaders, Fanuc and Yaskawa Electric, have seen their stock prices decline this year instead of rising, clearly falling behind the Nikkei Index's 30% gain.
Why? Because Chinese competitors are catching up too fast. In China’s servo market, Huachuan Technology has already captured 35% market share, and its market capitalization has surpassed that of Yaskawa Electric. Even a director from SMC openly lamented: “Many emerging companies from within China are formidable rivals we’ve failed to notice.”
Most people in China don’t invest in stocks, so they don’t feel it—but this isn’t just about the stock market.
What truly deserves our attention is the growing reality of being chased across more and more industries. In the past, “Made in Japan” stood for precision, durability, and high-end quality. Now, Chinese companies are rising rapidly in hard-core fields such as factory automation, industrial robotics, and humanoid robots, drawing increasing global consumer interest. In Japan itself, more and more people are choosing Chinese brands—especially young consumers, who are increasingly opting for Chinese electric vehicles and home appliances.
Back home in China, young people are voting with their feet: from cars to household appliances, they’re embracing domestic brands more than ever. The market share of Chinese home appliances has now exceeded 85%, while Japanese car brands’ peak market share once reached over 30%—but by the first half of 2026, that share had dropped below 8%. Even in fashion, data from VIP.com tells the story: just before National Day, sales of domestic brands like Anta, FILA, and Xtep performed strongly. With inherently high cost-performance ratios, these brands become even more appealing to youth when combined with discounts.
Looking back at the stock market, the poor performance of Fanuc and Yaskawa is actually a signal: capital is always the most sensitive. It doesn’t bet on past glory—it bets on future positioning. As more Chinese enterprises close the gap, similar concerns over stock performance are likely to come one after another.
Original article: toutiao.com/article/1876390711099395/
Disclaimer: This article represents the personal views of the author.