An Anatomy of Automation Business Opportunity in China in Times of High Wages: Taiwanese Businessmen Invested in China as a Case

Abstract

China’s “The Twelfth Five-Year Plan” sets a tone to turn China “from a strong nation to a nation with wealthy people” in its national development policy. This policy is expected to increase hiring costs for foreign investors in China and indirectly creates potential business opportunities for automation. This research surveys a score of Taiwanese businessmen in China and finds their primary motivation for investing in China is to gain access to the labor force. A majority of Taiwanese factories have longer working hours. Their needs for automation are mainly in quality control and testing, information systems, and material handling and storage.