China Has an Army of Robots
China’s secret weapon in the global trade war is its rapid adoption of factory automation, driven by artificial intelligence. This wave of industrial transformation is lowering production costs and boosting product quality, positioning China to better weather trade tensions and tariffs from the U.S., the European Union, and developing nations like Brazil and India.
The country’s factories are now more automated than those in the U.S., Germany, or Japan, with only South Korea and Singapore surpassing China in robot density, according to the International Federation of Robotics. This progress is part of a deliberate national strategy backed by massive government investment and policy directives.
Automation is not just transforming large-scale factories but is also reshaping China’s countless small workshops. Entrepreneurs like Elon Li in Guangzhou are investing in affordable Chinese-made robotic arms powered by AI, which can work around the clock—unlike human labor.
Large companies have been especially aggressive. In Ningbo, Zeekr’s electric vehicle plant has expanded its fleet of robots from 500 to 820 in just four years. Robots now handle everything from transporting aluminum ingots to welding complex car bodies in dark factories—facilities where machines operate without the need for human light or presence.
Despite the automation boom, many roles still require human oversight, particularly in quality control and precision tasks like installing wiring harnesses. However, artificial intelligence is increasingly taking over even some of these steps, including high-speed visual inspections using cameras and computer databases.
AI is also reshaping how products are designed. At Zeekr’s Shanghai office, designers like Carrie Li use AI to analyze surface intersections, freeing up creative energy to explore new aesthetic trends for car interiors.
China’s dominance in automation also extends to global influence. Chinese factories produce much of the world’s automation equipment, and companies have acquired foreign robotics firms like Germany’s Kuka, moving operations to China. Even global carmakers like Volkswagen rely mostly on Chinese-made robots in their Chinese plants.
This push toward intelligent manufacturing aligns with China’s “Made in China 2025” policy, which includes robotics as a key focus industry. The government has even mandated automakers to test humanoid robots in their facilities, aiming to accelerate innovation—even if the current technology is still rudimentary.
In a symbolic effort to promote robotic innovation, Beijing recently hosted a half-marathon with 12,000 runners and 20 humanoid robots. Only six robots completed the race, but the event drew attention to China’s ambition in developing intelligent machines.
China’s top economic planners are backing this movement with serious capital. A $137 billion venture fund was recently announced to support AI and robotics, while state-owned banks have funneled nearly $2 trillion into industrial automation over four years, funding both new factories and equipment upgrades.
A deep talent pool supports this expansion. Chinese universities produce over 350,000 mechanical engineers annually, compared to just 45,000 in the U.S. American manufacturers, like Agility Robotics, struggle to find skilled talent, hampering their ability to compete with China’s labor-automation pipeline.
Still, China’s factory workers feel the pressure. Geng Yuanjie, a forklift driver at Zeekr, sees fewer colleagues and more machines each shift. With only a high school education, he worries that without upskilling, he may soon be replaced. As China’s population ages and birthrates fall, automation may be the only path forward to sustaining its manufacturing edge.
