Robots Are Taking Over Chinese Factories | WSJ Tech News Briefing

Chinese factories are installing robots almost as fast as the rest of the world combined. But China is still playing catchup to other industrial economies when it comes to automation.

WSJ Asia economics reporter Jason Douglas joins host Zoe Thomas to discuss why China is pivoting now and what the shift could mean for the global economy.

Photo: Vincent Yu / Associated Press

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#China #Automation #WSJ

[feels.like.coffee]

It always surprise me that people still think China dominate manufacturing due to abundant cheap labours. That was true 20 years ago but things have long since changed.

[aburetik]

China's per capita GDP is higher than many European countries. China's dominance in manufacturing is due to its complete supply chains, superb infrastructure, highly productive labors, efficient logistics, low energy cost, favorable government policies and top-of-the-line technologies. Robots and Automation will further enhance China's dominance in manufacturing as it will offsets its elevated labor cost.

[godzillamothra]

this is why China is not so worried about demographic decline. Robotic tech, AI, 3D printing are getting more mature and cheaper. In fact, I wonder what countries like India will do to face this technology challenge? How are they going to keep providing jobs to millions of new babies every year?

[carlospulpo]

I can't wait for AI to start replacing CEOs etc, since they are so highly paid it would make sense to automate the management jobs.

[jonah_lau]

"One of the reasons we didn't have an inflation problem for the last 20, 30 years is because China plugged itself into the global economy all its cheap labor and cheap products help keep inflation dying."

[yuantan]

One example about Chinese manufacturing being more than just cheap labor is Cigarette lighters: How cheap can you make a lighter?
It doesn't have to be anything fancy, just a boring generic plastic product that is (1) able to light things up, and (2) as cheap as possible.
The BIC(French) lighters costs 16 US cents back in 1987, now they are around 20 cents apiece to manufacture.
On the other hand, modern Chinese manufacturers are making them at a cost just under 2 US cents apiece, and if you are willing to pay for shipping you can get them at ~3 cents apiece in bulk today.
At that price level you can't afford any low-level workers, and instead everything has to be automated.
You can't cut corners too far either because even a 1% defect rate is going to cost more than the savings from the cut corners.
It takes an incredible amount of expertise in product engineering, logistics, automation, and quality control to make such a mundane product as a lighter.

[softwaretestinglearninghub]

This was predicted for a while, it is time to switch to the kind of jobs where you control and build technologies. Great video, thank you!

[drewh]

China is already a top-notch in AI. So it is not surprising to maintain its world class, high value chain manufacturing.

[thebackpacker]

The Chinese are very intelligent. They work hard and at a reasonable cost. They have the best customer service . India would have to learn from them. India is a long way behind China in development and customer service, but acts like China.
Within 20 years, China will be stronger than any other country combined.

[deshengji]

You can’t imagine how western countries live without made in China as well as the inflation rate

[directxxxx]

Meanwhile western MSM collectively claim that China is using forced labour 😂😂😂😂

[dltraining]

One warehouse here they have robots doing the work and only 13 or so workers. The robots are very productive. Just routine maintenance and they will go.

[jayceh]

A 1, 000 worker BYD factory pumps out 450+ cars per day, with 5-star rating from the EU for quality.
Not a single car factory in the EU or US can compete.

[cshan]

Education is top priority of almont every chinese family. China has 8-10million uni graduates every year which is 1/3 of the world. That is reason China is and will be top manufacturer even next 50-100 years.

[shahinchoudhury]

" middle income trap" is what they want to avoid.

[loukramer]

Just wondering if you left something out that is important - what about the cost decline curve for robotics and overall improvements in the technology especially when paired with AI?

[panashifzco]

China is really quick at adapting to industrial trends.

[emmanuilushka]

4:49
updating of information
China overtakes USA in robot density
according to World Robotics 2022 Report

[hurrikkkanes]

if u read marx automation is actually the dream condition for the productive forces

[magrathea]

We have to learn from chinese peoples, how we can increase our productivity by using technology. I appreciate chinese peoples hard work.
👈👈👈