China to replace 90 % labour force with robots

Chinese companies have a new economic trend. Labour force is to be replaced with robots.

China's manufacturing hub of Dongguan is a pioneer in fostering a robotic industry.

A total of 1,000 robots would be introduced at the factory initially, run by Shenzhen Evenwin Precision Technology Co, with the aim of reducing the current workforce of 1,800 by 90 per cent to only about 200, Chen Xingqi, the chairman of the company's board said.

Robots are set to take over in many factories in the Pearl River Delta, the area of southern China known as the 'world's workshop' because of the huge export manufacturing industry there, as labour shortages bite and local authorities face the need to spur innovation to counter the economic slowdown.

Since September, a total of 505 factories across Dongguan have invested 4.2 billion yuan in robots, aiming to replace more than 30,000 workers, according to the Dongguan Economy and Information Technology Bureau.

1,500 city's industrial enterprises are to begin replacing humans with robots by 2016.