You will prepare and submit a term paper on Process of Automation in China. Your paper should be a minimum of 3750 words in length. Technologies such as cloud-computing solutions and mobile communication technologies to enhance communication between employees working in different units. Flexible manufacturing processes are also expected to become popular in the BRIC economies. This paper examines the automation industry in China and the factors influencing the adoption of the automation systems in the country.
For long, China has provided firms with cheap labour and adequate resources. The country is also the largest recipient of the FDI, and several factors make the country a suitable destination for investment capital. According to Fox (2012), these factors include well developed infrastructure, availability of labour, and adequate workforce skills. In addition, lower transaction costs mean that the investors are able to attain high returns on their investment.
However, in the recent past, the workers in the country have been agitating for better wages, and in response firms have started automating their production processes. According to the available statistics, the labour costs in China have increased by 12.3%, while the cost of raw materials is already going up (Nolan, 2014). Automation of the industries is also being driven by the need to produce quality products. Companies want to compete with foreign countries, and ensure consistent production of goods.
According to Sultan (2012), the automation of Chinese factories is happening at a very fast rate, and already companies such as Foxconn have adopted the new technology. Foxconn is one the largest producers of phone products in the country, and due to bad publicity it has decided to introduce over one million robots in its factories. The extent of the practice is well captured in an article titled, analysis: robots lift Chinas factories to new heights. According to Christensen (2012), the Great Wall Company in china has also introduced giant orange robots.