How China’s tech transformation is putting the ‘world’s factory’ in a tough spot | South China Morning Post

As China undergoes a sweeping economic transition, its regions are also in the process of embracing change. The powerhouses of yesteryear must adapt or risk falling behind, as traditional industries become less reliable growth drivers and new sectors take prominence. In this series_, we explore three representative areas of the country as they attempt to navigate this rapidly changing environment._

One morning in December, Zhang Li showed up for work as normal at Everwin Toys in Dongguan to find a notice pinned to the factory gates.

The message was brief and unsentimental: due to shrinking demand in the toy industry and changes in the global economy, the company had seen its revenues decline by over 40 per cent and had no choice but to halt production.

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For Zhang, the news threw her life into disarray. Like many of her 2,000 colleagues, she had worked at the factory for more than 15 years, joining in her early 20s and spending her prime years on the assembly line.

“Now I’m in my 40s,” she said. “Where will I find my next job?”

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Zhang is one of millions of migrant workers caught on the front line of a rapid – and, at times, painful – economic transition unfolding in China, as the country’s vast manufacturing sector adapts to rising global trade tensions and breakneck technological changes.

The shifts are leaving China’s factory hubs feeling increasingly polarised: while the top firms surge ahead – helping China rack up a record trade surplus of over US$1 trillion last year – the reality for workers often feels very different as they face stagnant wages and waves of factory closures.