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Robots in China: Automated Workers Begin to Take Over Jobs, Consequences for Labor Industry

Mar 28, 2017 09:20 AM EDT

Recent surveys suggest that China's attraction to industrial robots may create a boom in the industry and begin replacing manufacturing laborers with that of automated machines.

This is through an FTCR survey which revealed that local governments are actually subsidizing companies that are willing to develop these robots. A lot of companies are already reporting gains as they begin to reduce frontline workers and replace them with automated machinery.

This means 72.7 percent of companies pushing for more automated machines will more or less have to lay off workers.

According to Retirement Genius, industrial automation is often seen as the answer to finding an efficient economy and solve the country's problem with its lack of workers of the working age.

As of this moment, the government is trying to create a robot population to fit a 150 unit per 10,000 worker scale by 2020, which according to some, is something that is very close to happening.

Of course, this is alarming some local government units as they may not have the necessary funding to compete with other businesses. However, China is already poised to dominate the automated industry regardless. Financial Times said that by 2019, China may account for 40 percent of the market for industrial robots worldwide.

The robots in China appears to be a "solution" to the growing complaints about low wages and the pressures to give a raise for workers -- a lost cause for some as there is a clearer sign of improvement when robots were installed.

Sadly, this also means that robots started to replace workers as well. According to the Development Research Center, robots have reduced labor demand by 40,000 positions per year. Now, even local governments are encouraging downsizing, much to the expense of migrant workers.

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