China’s secret weapon in the trade war is an army of factory robots, powered by artificial intelligence, that have revolutionized manufacturing.

Factories are being automated across China at a breakneck pace. With engineers and electricians tending to fleets of robots, these operations are bringing down the cost of manufacturing while improving quality.

As a result, China’s factories will be able to keep the price of many of its exports lower, giving it an advantage in fighting the trade war and President Trump’s high tariffs. China is also facing new trade barriers by the European Union and developing countries ranging from Brazil and India to Turkey and Thailand.

Factories are now more automated in China than in the United States, Germany or Japan. China has more factory robots for every 10,000 manufacturing workers than any other country except South Korea or Singapore, according to the International Federation of Robotics.

China’s automation drive has been guided by government directives and backed with huge investment. And as robots replace workers, automation positions China to continue to dominate mass production even as its labor force ages and becomes less willing to take industrial jobs.