China's Factories Turn to Robots, Heightening Employment Pressure

Job Fairs Are Packed, But Few Are Finding Employment

[People News] Recently, manufacturing regions such as Guangdong, Jiangsu, and Zhejiang have seen factories gradually implement robotic production lines, replacing certain assembly line, handling, and assembly jobs. Meanwhile, China's youth unemployment rate remains elevated, and the number of flexible employment positions is on the rise. Interviewees suggest that the introduction of robots into factories is altering the employment structure within the manufacturing sector, leading to a diminishing number of job opportunities for ordinary workers. If the pressure of unemployment continues to escalate, it could potentially lead to social unrest.

According to reports from Radio Free Asia, several videos showcasing robots at work in factories have recently gone viral on social media. One video depicts stamping robots operating swiftly on the production line, with accompanying text indicating that a workshop that previously required hundreds of workers now only needs a minimal staff to supervise operations after the robots were introduced.

Robots Replace Human Labor in Factories

The owner of a hardware and electrical processing factory in Shunde, Guangdong, remarked that the six-axis robots he has implemented can operate continuously for 24 hours: "Look at these 20 robots that are currently at work; they do not require salaries, food, or housing, nor do they need insurance. They can work independently around the clock, and their output remains stable, making them far more cost-effective than hiring human workers."

Wu Zhihao, a former manager at a manufacturing plant in Guangdong, told Radio Free Asia that many companies are going bankrupt due to the challenges of managing high labor costs amid declining orders. With the introduction of robots, factories can avoid paying wages to employees during production halts. He stated, 'Currently, robots have not been widely adopted because of China's policy of advancing state-owned enterprises while retreating private ones, leading to a significant outflow of orders, which makes it very difficult for private companies to survive. With robots, there is no pressure to lay off workers. Previously, if 100 workers were employed, now with AI and robots, it might only require 10. Just think of the savings! Many companies are currently struggling under the burden of the five insurances and one fund, social security, and taxes, and robots have become a lifeline for many of them.'

Official Promotion of Intelligent Manufacturing

In recent years, the Chinese Communist Party has been promoting automation and intelligent manufacturing within the manufacturing sector. The Economic Information Daily, a publication under Xinhua News Agency, reported that by 2025, humanoid robots will shift from 'performing on stage' to 'being utilized in factories,' taking on roles such as sorting materials, transporting boxes, and installing parts in various settings, including automobile production, home appliance manufacturing, and logistics. The report also noted that Midea's washing machine factory in Jingzhou has had humanoid robots working for over six months.

According to a report by The Paper last month, Shanghai announced at the press conference for the "Starting Point of the 14th Five-Year Plan" that it will fully implement the "Artificial Intelligence +" initiative to drive the intelligent transformation of the manufacturing sector. The focus will be on key industries such as integrated circuits, high-end equipment, and automobiles. With 10 model enterprises leading the way, the plan includes the development of embodied intelligence, industrial intelligence systems, industrial corpora, and intelligent computing cloud platforms, aiming to cultivate intelligent native factories. Shanghai officials stated that by the end of the 14th Five-Year Plan, they aim to introduce 100,000 humanoid robots into factories, with the application rate of intelligent systems in large-scale industrial enterprises exceeding 80%. 

Mr Wang, a businessman from Guangdong, expressed concerns that the introduction of robots in factories will lead to the replacement of certain jobs, potentially resulting in new social conflicts due to rising unemployment. He remarked, "The replacement of human labor by robots will create additional social issues. Online statistics suggest that there are hundreds of millions of flexible employment workers in China, which is quite serious. If you walk through the streets in various parts of the country, you will notice that many storefronts on pedestrian streets are closed, even during the day on weekends. When people are out of work and feel desperate, it could lead to mass incidents." 

Expansion of Flexible Employment Scale 

A week ago, the China New Employment Form Research Center published the "2025 China Blue-Collar Employment Research Report," estimating that by 2025, there will be around 280 million flexible employment workers in China, with projections reaching 320 million by 2026, which would account for over 40% of urban employment.

Mr Zhu, a practitioner in Jiangsu's manufacturing industry, told reporters that the introduction of robots into production lines represents a technological revolution currently underway and reflects a trend in the manufacturing sector's development. He believes that the reduction in manufacturing workers will also impact consumption: 'Jiangsu, Zhejiang, and Guangdong have long been manufacturing hubs since the reform and opening up. In recent years, due to the trade war with foreign countries, many orders have been lost, and with the rise of robots, the number of workers has decreased. Now, many stores are closing or going out of business due to a lack of consumers, and robots are affecting the service industry.'

On June 10, Reuters reported that Chinese companies are reducing job positions in a smaller-scale, gradual manner against the backdrop of promoting artificial intelligence applications in Beijing. The affected industries include technology, advertising, and film production. The report noted that some companies are utilizing artificial intelligence tools to replace certain jobs while also cutting back on graduate recruitment.
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