Overview
China has been growing as a leader in industrial automation, replacing millions of workers with robots without major mass layoffs. The focus is on gradually transforming the workforce, with reallocation to the service sector—and without the social shock many feared.
️ Determining Factors
• Policies and Investment: Since Made in China 2025 (launched in 2015), the country has encouraged industrial modernization with robots, equipping industrial parks with advanced technology.
• Rising Wage Costs: When the average annual wage exceeded ~50,000 RMB, investment in robots (around 100,000 RMB) became economically attractive, especially with falling equipment prices.
• Local Capacity Building: China has developed its robot industry (e.g., Midea + KUKA) and extensively trained automation professionals—something its Southeast Asian neighbors have yet to achieve.
Impact on Workers
• Gradual displacement through "natural reduction" (retirements, job changes without new hires).
• Instead of becoming unemployed, many migrate to sectors such as delivery, retail, and digital entertainment — estimated: >20 million workers.
• Optimistic attitude: About 90% of workers interviewed report not fearing job loss; many migrants see automation as an opportunity.
International Comparison
• In developed countries, automation was late and less intense — many resorted to offshoring initially.
• Today, China accounts for more than 50% of industrial robots installed globally (~270,000 out of 540,000 in 2023).
• This mitigated the risk of "premature deindustrialization" seen in countries like Mexico or Indonesia.
Next Steps
• Industrial automation is reaching a plateau — the next boost will come from artificial intelligence, applied to management, service, and data analysis activities.
• The increase in professionals with higher education and technical qualifications creates favorable conditions for this evolution.
Problems identified