Industrial robots complicate inter country relative advantage
Every once in a while a headline pop up that makes one wonder what it could mean. Here is one – what does the future look like with a China that is significantly more automated? What happens when most robots are in China?
China, once the manual labour “workshop of the world”, has become the largest buyer of industrial robots, as rising wage costs and growing competition from emerging economies have forced manufacturers to turn to technology.
We have grown accustomed to the idea that wage disparity will level off and the natural benefit will disappear. However the advent of robots could alter that balance in ways we cannot comprehend as yet. The future is not linear.