Factories and ports embrace AI and robots to maintain China’s manufacturing edge amid rising wages, labor shortages, and global trade pressures.
China is deploying Artificial Intelligence (AI) and Robotics at an unprecedented pace to strengthen its position as “the world’s factory floor,” even as rising wages, a shrinking workforce, and global trade pressures challenge its manufacturing dominance.
The nation installed 295,000 industrial robots in 2024 alone — nearly nine times the number deployed in the United States and surpassing the combined total of all other countries. This push has brought the total number of operational robots in China’s factories past two million, according to industry reports.
At Baosteel’s Shanghai facility, dubbed a “dark factory,” human operators now intervene once every 30 minutes instead of every three, as AI systems coordinate production from control rooms. The automation allows companies to maintain output while reducing reliance on labor, a growing concern as younger workers increasingly avoid factory roles.
In Jingzhou, appliance maker Midea operates a washing-machine plant using an AI-powered “factory brain” that directs 14 virtual agents and Kuka robots, acquired nearly a decade ago. The system uses 3-D cameras to inspect components, identifies defects, and guides human staff via AI-assisted glasses. Processes that once took 15 minutes now take 30 seconds, and revenue per employee has increased by nearly 40% since 2015.
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Fashion and consumer goods firms are also embracing AI. Bosideng, a down-jacket manufacturer, partnered with Zhejiang University to develop in-house AI for design. Virtual prototypes now take 27 days to produce, down from 100, with costs cut by 60%.
Heavy industry is similarly transforming. At Conch Group’s cement plant in Wuhu, Huawei engineers have deployed AI to predict clinker strength and optimize kiln energy use. The technology now forecasts quality with 85% accuracy, up from 70%, while reducing coal consumption by 1%, saving roughly $300,000 annually.
Ports, a strategic focus for Beijing, are also being modernized. At Tianjin, one of China’s largest ports, unmanned trucks and the OptVerse AI Solver system now handle ship arrivals and crane logistics. PortGPT, an AI model for video and image analysis, could replace some human safety inspectors. Over 88% of container equipment at Tianjin is automated, requiring 60% fewer workers than traditional operations.
China’s rapid AI deployment comes as the United States, under President Donald Trump, signals renewed protectionist measures and tightens export controls on advanced chips. Officials argue automation offsets labor shortages, maintains cost advantages, and ensures global competitiveness.
However, experts caution that AI integration is gradual. Factories report trial-and-error challenges, and the long-term effects on productivity, employment, and global industrial balance remain uncertain. Still, China’s push signals a strategic bet that AI and robotics will sustain its manufacturing edge for years to come.
