I’m Dirk Simon, an independent consultant for Additive Manufacturing (AM), besides my role in FKM Additive Manufacturing, I have extensive experience working with corporations in China, particularly in the field of Additive Manufacturing. From 2018 to 2023, I worked with Farsoon Technologies, where I was responsible for launching Farsoon’s business in Laser Sintering and Laser Melting Machines across Europe.
The title of my presentation, China’s Globalization of AM – Concepts to Avoid Becoming Victims, at the recent Mobility Goes Additive Annual Meeting may sound a bit critical, but I started off by stating, “Life is hard and unfair.” You need to be prepared for this reality and aim for win-win situations. It’s important not to use unfairness as an excuse to see yourself as a victim, nor should we position others as victims. Instead, we need to understand each other to identify mutual interests and collaborate effectively.
This is a guest post; if you have a perspective you’d like to share with 3DPI readers – get in touch!
The evolving AM landscape in China
I shared my personal view on China, supported by many photos from my business trips, dating back to my first trip in 1999. I have a deep fascination with the country, the people, and the great achievements China has made, even from an ecological standpoint, such as tackling air pollution and reducing waste from disposable items. But I also highlighted the omnipresent surveillance and the current economic challenges, such as deflation, low growth, and insufficient domestic consumption. This has resulted in high youth unemployment, and there’s a growing trend of young people leaving China, which worsens the situation.
I also explained how the Chinese government showcases the country’s strength, aiming to retain talent and stoke nationalistic sentiments, which I interpret as potential geopolitical risks.
Moving on to additive manufacturing (AM) in China, I emphasized how strong the industry is and how it’s striving to increase competitiveness compared to conventional manufacturing. Chinese companies such as Xi’an Bright Laser Technology (BLT), Bambu Lab, and Farsoon have significantly reduced the cost of AM parts, for example, by build cylinder transfer, closed loop powder handling, multiple-lasers, and more straightforward calibration. Improvements in the quality of parts have come from in-line monitoring, software advances, and scan path optimization. Finally, improving the user-friendliness of their machines has increased efficiency, also saving costs.
The companies referenced above are now entering large-scale series production, which will drastically reduce machine prices. China is not just cost-competitive but highly inventive as well, with patent filings on the rise. Figures show 1.6m patent filings from China in 2022, compared to 600k from the USA and 57k from Germany; BLT alone filed nearly 600 patent applications. The high number of patent filings does not necessarily refer to the quality of the invention; however, in China’s AM, we recognize that valuable innovations are being pushed to market quickly, still with a pioneering spirit.
China’s part manufacturing industry is also impressive, with companies like In3Dtech and Xiafeng primarily serving the domestic market. However, BLT has expanded its capacity for metal part fabrication and is already exporting metal parts to Airbus in Toulouse for use in aircraft. These developments show that China’s strengths in AM can be globally beneficial, especially in enhancing the economic and ecological advantages of additive manufacturing. We can benefit from these strengths in Europe by forming partnerships with Chinese AM companies. Given China’s current economic struggles, they are eager to collaborate with Western corporations and universities, as it boosts their global image.
How to avoid buyer remorse
However, when collaborating with China’s AM sector, I recommend being prepared for the risks. In my presentation, I outlined a detailed purchasing process for buying machines from China, including several steps to meet expectations and requirements. These include how to perform the benchmarking, the Factory Acceptance Test, and the Site Acceptance Test.
Western corporations can leverage Chinese culture during this process by building relationships, establishing trust, and posing challenging tasks while involving public recognition. I also gave specific recommendations for sales contracts. For example, requesting a hold-harmless letter regarding no patent violations in Europe, covering machine performance specifications like part quality and overall equipment effectiveness, as well as payment terms.
Additionally, I talked about the importance of ensuring continued operation, even in the case of supply chain interruptions from China, through proper maintenance, access to spare parts, and resolving software issues.
In conclusion, I stated that it’s time we learn from China. Yes, business is hard and unfair, but win-win situations are possible. Close collaboration is essential to prevent the emergence of severe geopolitical tensions.
Want to share insights on key industry trends and the future 3D printing? Register now to be included in the 2025 3D Printing Industry Executive Survey.
Nominations are now open for the 2024 3D Printing Industry Awards.
Subscribe to the 3D Printing Industry newsletter to keep up with the latest 3D printing news.
You can also follow us on Twitter, like our Facebook page, and subscribe to the 3D Printing Industry Youtube channel to access more exclusive content.
Featured image shows Dirk Simon at Mobility Goes Additive 2024. Photo via Dirk Simon
