Mass-producing 'robot armies', China is becoming stronger and stronger, its global position is difficult to shake

As China seeks to “cope” with an aging population, a shrinking workforce and strengthen its position as the world’s factory, this is the “key”.

In textile factories across the Yangtze River Delta in eastern China, a change is already underway. Stores once bustling with workers have now become somewhat unfamiliar environments. The air becomes more “rigid”, more mechanical because that is exactly what they are.

Many areas that traditionally used human labor have now made the transition to robotic systems – replacing employees with modern automated equipment. Companies are doing so to keep labor costs steady and prepare for the inevitable decline in the workforce relative to the total population.

Factories with an annual output of about 300 million yuan ($41 million) previously required about 100 workers to maintain. Now most have no employees, requiring only four or five personnel to manage and maintain production.

This automation trend has emerged against a backdrop of deepening demographic difficulties – low birth rates and rapidly aging societies. This is a concern for the future of the world’s second largest economy.

Textile mills in the delta, including Shanghai, Jiangsu and Zhejiang, are many of the places most affected by China’s recent population shifts.

“Production line automation has really helped factories survive and complete the chain of operations,” said Xue Ping, a furniture and textile manufacturer and exporter in Zhejiang.

Advanced technology and smart manufacturing are key to overcoming geopolitical complexities and demographic changes, industry insiders and manufacturers say.

According to the country’s Ministry of Industry and Information Technology, China produced 281,515 industrial robots in the first eight months of 2023, an increase of 2.3% over the same period last year, and has established nearly 8,000 digital factories. and smart manufacturing factory by July 2023.

According to the South China Morning Post (SCMP), China’s working-age population – those aged 16 to 59 – has dropped to 875.6 million people in 2022 from 896.4 million in 2019. While The over-65 population increased to 209.78 million last year from 176 million in 2019.

China’s current robot density – measured as the number of robots per 10,000 manufacturing workers – is 392. This figure was announced in 2023, up from 140 in 2018 and 68 in 2016. China tops the global density rankings at 1,000, followed by Singapore at 670.

According to the International Federation of Robotics (IFR), China is the only country to surpass the milestone of 1.5 million industrial robots. Adoption is widespread mainly in the automotive, machinery and electronics industries.

“Aging is just one of the factors,” said Luo Jun, secretary general of the Asian Manufacturing Forum. More importantly, it is the need for industrial transformation and upgrading that will help China’s industrial robot growth rate top the world and will continue to do so.”

Luo said robotics will allow China to maintain a strong industrial system as it competes with emerging markets.

He also said that this progress is enhancing China’s position in the global manufacturing sector. China should not only strengthen its position as the world’s factory, but also aim to become an advanced manufacturing power.

Refer to SCMP

Source: https://cafef.vn/