China’s Factories Find a Hybrid Path to Automation, Balancing Growth with Employment Concerns
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China, already the world’s leading market for industrial robots, is investing heavily in robotics and artificial intelligence to bolster its manufacturing sector. However, the path to full automation isn’t a simple replacement of human workers, but rather a nuanced, hybrid approach that leverages the strengths of both humans and machines, according to experts and factory owners.
The evolving landscape of Chinese manufacturing highlights a critical tension: the desire for increased efficiency and global competitiveness through automation, weighed against the need to maintain employment levels in a nation with significant workforce pressures.
Human Judgement Remains Key in Advanced Manufacturing
At an autonomous vehicle workshop, a manager at the Neolix company explained that even in technologically advanced manufacturing, humans remain indispensable. “Many decisions require human judgement,” the manager said, noting that certain skill-based elements still necessitate human intervention. Neolix itself produces small, driverless vans used for parcel delivery in Chinese cities.
The Neolix factory, located 300 kilometers (186 miles) north of Shanghai, showcases this interplay. Newly built driverless vehicles are rigorously tested on a track designed to simulate real-world obstacles like puddles and bridges. Inside, workers assemble the vehicles’ core components – cameras and computer chips – ensuring their functionality. “Automation… primarily serves to assist humans, reducing labor intensity rather than replacing them,” the manager added.
Feasibility of Full Automation Varies Widely
While a hybrid model appears prevalent, the feasibility of full automation varies significantly across different sectors and company sizes. A mechanical engineering expert at Shanghai’s Jiaotong University suggested that China’s strategic focus on industrial applications for AI means complete automation is already achievable in many areas.
Illustrating this point, tech giant Xiaomi operates a “dark factory” – a fully automated facility requiring no lighting due to the absence of human workers – where robotic arms and sensors assemble smartphones without human intervention.
A Growing Digital Divide
However, a significant digital divide exists between large corporations with the resources to invest in modernization and smaller businesses struggling to keep pace. For companies like Far East Precision Printing, part of China’s vast network of small, independent factories, full automation remains a distant prospect.
Located just outside Shanghai, Far East Precision Printing still relies heavily on manual labor for tasks like feeding sheets into folding machines and operating label printers for electronic devices. Until two years ago, the company tracked its workflow using pen and paper, leading to significant organizational challenges. “Things were, to put it bluntly, a complete mess,” the company’s owner, Zhu Yefeng, stated.
Incremental Progress and Financial Constraints
Far East Precision Printing has since adopted software that utilizes QR codes to update a factory-wide tracker, providing managers with real-time insights into order completion and employee productivity. “This is a start,” Zhu said, expressing a desire to adopt more advanced technologies like automation to secure larger client orders.
However, financial constraints pose a major obstacle. “As a small company, we can’t afford certain expenses,” Zhu explained, adding that his team is attempting to develop its own robotic quality testing machine, but for now, human inspection remains essential.
The potential for widespread job displacement due to automation is a significant concern. According to Jacob Gunter from the Berlin-based Mercator Institute for China Studies, companies would likely welcome reduced headcount, but the government faces pressure to maintain employment levels. Beijing’s push for industrial robots will therefore “intersect with the need for maintaining high employment at a time when employment pressure is considerable.”
The Future is Hybrid
Looking ahead, manufacturers must strike a balance between technological feasibility, social responsibility, and business necessity, according to the Jiaotong University expert. Zhou Yuxiang, CEO of Black Lake Technologies – the startup that provided the software for Zhu’s factory – believes factories will “always be hybrid.”
“If you ask every owner of a factory, is a dark factory the goal? No, that’s just a superficial description,” Zhou said. “The goal for factories is to optimize production, deliver things that their end customers want, and also make money.”
© 2025 AFP
