China has an army of robots on its side in the tariff war

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China's Automation Push

China is rapidly integrating robots and AI into its manufacturing sector, particularly in the automotive industry. This is evident in factories like Zeekr, where the number of robots has significantly increased over the past four years. The automation includes various processes, from material handling to welding and quality control, with AI playing a key role in optimizing design and efficiency.

Government Initiatives and Economic Factors

This drive is fueled by government initiatives like "Made in China 2025," which aims to boost competitiveness in key industries. Massive government investment, increased lending to industrial borrowers, and a large pool of skilled engineers from Chinese universities are supporting this rapid automation. This push is also partly due to China's demographic crisis and declining workforce.

Impact on Workers and Concerns

While automation offers increased productivity, it also raises concerns among workers who fear job displacement. The lack of independent labor unions and strong government control limit avenues for dissent.

  • A worker at Zeekr factory shares his anxieties about job security.
  • The demographic shift is a major driver of China's automation push, as the workforce ages.

Comparison with the US

The article highlights the contrast with the US, where finding skilled workers remains a challenge for robotics companies, unlike in China which boasts a large pool of engineering graduates. Even US car factories rely on automation equipment largely sourced from China.

Humanoid Robots and Future Direction

China's commitment to automation is evident in initiatives such as the Beijing half-marathon involving humanoid robots, showcasing progress and ambitions in the field. The government's commitment is further emphasized by Premier Li Qiang's statements and the establishment of a substantial national venture capital fund for advanced technologies.

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