Automation of the Manufacturing Industry in China: Prospects and Risks

Abstract

The paper examines the current state, prospects, and risks of the automation of China’s manufacturing industry in the context of demographic changes and the country’s transition to a new development model based on intensive growth factors. The transition to a new growth model and demographic changes have led to a shift in the factors of China’s competitiveness. Nonetheless, China continues to be the “world’s factory”, which implies the accelerating pace of industrial automation. Over the past 10 years, China has been the largest consumer of industrial robots in the world and has actively increased its own production. The country has surpassed the United States and reached the level of developed countries in terms of robot intensity. Despite the rapid growth in the adoption of industrial robots, an assessment of the structural changes in employment and the pace of automation in manufacturing up to 2030, based on available data, suggests that robotization is unlikely to pose significant risks to employment yet. Moreover, the pace of automation may prove insufficient to address the shortage of workers in the manufacturing sector.