View all Articles
Commentary By Will Hanna

Economics Newsletter: China’s Embrace of Automation 

Economics Artificial Intelligence, Finance, Geopolitics

As the world races to develop more automation and artificial intelligence, China has embraced the technology in their industrial sector by rapidly implementing robots in place of human labor. The most recent Artificial Intelligence Index Report shows China has dramatically increased their use of robots over the past decade. In 2021, China installed over seven times more industrial robots than the United States. 

China’s population crisis is a leading motivation for their adoption of robotics. The country’s worsening demographic problem is driven by a decline in birth rates coupled with an aging population. As a result, the Chinese government has identified robot-use as one potential solution to a nationwide labor shortage.  

The AI Index Report also shows the number of manufacturing robots worldwide has more than doubled since 2015. The recent surge of investment into artificial intelligence will likely complement this adoption of robotics, since AI enhances robots with capabilities to be more productive, respond to the environment, and save time. Further progress in the automation sector could be crucial for China as they reimagine the future of their industrial work force.

Source: AI Index Report 2023 

Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.

Interested in real economic insights? Want to stay ahead of the competition? Sign up for our weekly newsletter here.

Photo by imaginima/iStock