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China struggles to transition beyond 'world's factory'

Robots are used at this Chinese carmaker in Guangdong Province. The number of Chinese companies introducing industrial robots has been rising recently.

GUANGZHOU,China -- China's bid to join the ranks of the world's manufacturing powerhouses still faces a bumpy road ahead as many local companies count on government subsidies and do not spend enough on research and development.

     China has experienced rapid economic growth as the world's factory on the back of low labor costs, with many foreign companies investing in the country to build assembly plants.

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