"Robot Revolution": How China adapting to an ageing workforce

China's manufacturing sector is grappling with a significant challenge as it faces rising labour costs, primarily due to the country's shrinking working-age population.

In response, Chinese manufacturers are increasingly turning to automation and "smart manufacturing" technologies to remain competitive, Caliber.Az reports via foreign media.

One example is Zongwei, a company that designs advanced factory lines utilizing maglev conveyor systems. These systems transport products at varying speeds and directions, drastically reducing production time. Clients such as China Tobacco, BYD, Foxconn, and Luxshare rely on Zongwei’s technology. This shift towards automation, including robots that replace human labour, is central to China’s "robot revolution," aimed at addressing labour shortages in an ageing population. The government has offered incentives such as tax breaks and subsidies to foster investment in automation.

China is now the world’s largest market for industrial robots, installing over 276,000 last year—more than half of the global total. Previously dependent on imports from Japan, Germany, and the US, Chinese manufacturers are now replacing foreign robots with domestic models at lower costs. This has contributed to a reduction in the price of smart manufacturing equipment. However, there remains a significant gap in training workers to operate and maintain these advanced machines.

China’s manufacturing industry has long relied on migrant workers, who typically have lower education levels. As of last year, only 52% of migrant workers had a middle school education, and 14% had only a primary school education. As robots take on jobs that were once filled by these workers, many are moving to the service sector instead. Studies show that higher robot adoption corresponds with a decline in the number of migrant workers in manufacturing.

Despite this, China still has a strong pool of engineers who are essential in adapting and integrating automation. Industry leaders argue that robots are filling labor gaps by taking over tasks that are undesirable or difficult to staff, such as dangerous or repetitive work. Training efforts, often provided by robot suppliers, are essential to upskill the workforce. Companies like Zongwei and ABB Robotics have dedicated teams to train factory workers and ensure the efficient use of automation technologies.

For China, automation is not seen as a job killer but as a necessary tool to maintain its competitive edge in global manufacturing. However, it also requires a workforce capable of adapting to these technological shifts, with many workers opting for training or early retirement in response to the changing landscape.