China Population Crisis: Will robots and AI become China's new workforce; what challenges will they bring?
China Population Crisis: China, the world's second-largest economy, is currently grappling with a severe demographic crisis. The country's birth rate has reached its lowest level in history, leading to a steady decline in the working-age population.
To address this crisis, China has adopted a strategy that could transform the future of the world. To address the human shortage, China is now developing robots and artificial intelligence (AI) as its new workforce.
Over half of China's population will be elderly by end of century
Statistics show that people over 60 in China currently comprise approximately 23% of the total population. Experts warn that if this situation continues, more than half of China's population will be elderly by the end of the century. This means fewer young people will be working and more elderly people will rely on pensions, putting significant pressure on the economy. Although the government has taken several steps, such as cash incentives for children, tax breaks, and easing marriage rules, these have had limited impact so far.
Need for humans will be reduced
To address this labor crisis, China is transforming itself into a high-tech power under its 'Made in China 2025' plan. Today, China has become the world's largest industrial robot market. According to reports, more than half of the robots installed worldwide in 2026 will be in China alone. Many factories are now adopting the 'dark factory' model, where machines operate automatically even when the lights are off, reducing the need for humans.
Machines for elderly care
China's plan isn't limited to factories. The government is now also relying on machines for elderly care. To this end, technologies such as humanoid robots, exoskeletons, and muscle suits are being rapidly developed to support the physically challenged elderly. Additionally, China has raised its retirement age for the first time in 2024 and is emphasizing pension reforms and skill development to maintain its economic strength.
Massive job losses in the short term
However, this technology-based solution also brings with it new challenges. Experts believe that while automation may bring long-term benefits, it could lead to massive job losses in the short term. It is estimated that approximately 70% of jobs in China's manufacturing sector could be affected by AI and robots. Consequently, China faces a labor shortage on one hand and the concern of unemployment caused by machines on the other.