This Chinese Province Is Investing in Robots To Solve Its Labor Problem
Nov 18, 2013 18:59
Robots are taking over our jobs! With an increasing labor cost and a shortage of workers, the eastern province of Zhejiang, China is investing into some robotic help.
Over the next five years, authorities will invest 500 billion yuan ($82 billion) to help 5,000 companies per year swap humans for machines, according to China Daily. Labor costs have been rising almost 16% annually in the province, and switching over to machines could trim the need for 700,000 jobs, according to the Zhejiang Economic and Information Commission.
“Replacing workers with robots in dangerous and unhealthy working environments and using them for more creative jobs will be an inevitable choice for China’s manufacturing sector,” said Li Gang, China robotics head at the Zurich-based industrial robot producer ABB.
China has been steadily losing its labor cost advantage to less developed countries like Bangladesh and Cambodia. The country has said it wants to become a world leader in robotics, and companies are now focusing on both service and industrial robots.
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