GIS Reports: Global Stress Intensifies Domestic Hunger
China’s recent focus on enhancing manufacturing and exports has significant implications for its economy and the global market. This approach comes amid growing domestic challenges, including chronic unemployment and a sluggish real estate market.
China’s Manufacturing and Export Dominance
On December 10, 2023, advancements in automation within China’s manufacturing sector were demonstrated at an unmanned vehicle assembly line in Changzhou, Jiangsu province. The Chinese government, prioritizing state-led automation, aims to boost exports and manufacturing efficiency while maintaining its position as the world’s leading supplier.
Environmental and Economic Factors
The Chinese Communist Party (CCP) has responded to economic pressures by intensifying its focus on export-led growth. Despite widespread national issues such as deflation and stagnant domestic demand, the ruling elite believes that expanding exports will compensate for local economic losses.
- Chronic unemployment affects a significant portion of the population, particularly young graduates and migrant workers.
- Household and government debt continue to rise, further complicating the economic landscape.
- The ongoing real estate downturn contributes to increased collective poverty.
Automation and Economic Policy
Automation has become a key strategy for China’s manufacturing advancement, as illustrated by the “Made in China 2025” initiative. This program seeks to elevate China’s technological capabilities in manufacturing, giving the state an edge against Western competitors.
From 2020 to 2024, China’s value-added manufacturing increased significantly, underscoring the nation’s commitment to becoming a high-tech manufacturing powerhouse. The country is now home to approximately 303,000 industrial robots, accounting for a substantial portion of global installations. This trend signifies China’s aggressive shift toward incorporating advanced technologies in production processes.
The Challenge of Domestic Poverty
While China’s manufacturing capabilities are expanding, the social fabric is deteriorating. Approximately 600 million people in China earn about 1,000 yuan ($142) monthly, reflecting a stark contrast between rising industrial profits and the struggles of ordinary citizens.
Employment Trends and the Future
As automation continues, employment in manufacturing is expected to decline further. In 2024, approximately 120 million people were employed in this sector, down from 200 million in 2008. The ongoing integration of artificial intelligence will likely exacerbate these trends.
- Manufacturing sector employed around 120 million people in 2024.
- Total national employment stood at approximately 734 million.
- The tertiary sector accounted for 48.8 percent of total employment.
This shift reflects a critical future challenge for China, where economic strength does not translate to improved living standards for its citizens. The potential for political instability grows as the CCP prioritizes state-owned enterprises and aligned private companies over the welfare of the general population.
Global Implications
China’s ability to leverage exports while facing domestic issues raises critical questions about the sustainability of its economic model. As the world becomes increasingly aware of these disparities, the effects on global markets and international relations will intensify.
Through automation and strategic policy shifts, China’s ambition to solidify its place as a top manufacturing nation continues unabated. However, the challenge of balancing this with the need for domestic welfare remains a daunting task.
