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China is rapidly expanding its robotic workforce, driven by significant state investments. According to a recent Financial Times report, China now boasts a higher robot-to-worker ratio than Germany and is on track to match South Korea. This growth is fueled by the government’s strong interest in robotics, which includes substantial tax incentives and funding.
Chinese factories install approximately 280,000 industrial robots annually, with more than half manufactured domestically. Local companies are increasingly preferred due to their competitive pricing compared to global alternatives. This surge in robotic automation has reduced labor costs and increased efficiency, contrary to typical economic trends where labor costs should rise over time.
China’s interest in robotics extends beyond the industrial sector into the development of humanoid robots, exemplified by firms like Unitree receiving large-scale investments for low-cost solutions. The integration of these technologies across various industries is accelerating China’s manufacturing capabilities and aligning with its “Made in China” goals.
However, the rise of automation has had a notable impact on employment. Over the past decade, employment in several sectors has decreased by about 26.5%, according to Chinese government data, largely due to robotics. As NVIDIA CEO Jensen Huang notes, while physical AI represents the next big advancement, it may come at the cost of replacing human workers, particularly in labor-intensive environments.
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