Experts warn of social security challenges in age of automation

While the rapid adoption of robots and artificial intelligence improves efficiency and reduces the cost of human resources, the social security system could face challenges in sustaining individual benefits, pension payouts and healthcare funds — an issue that should be addressed in advance, experts said.

Zheng Gongcheng, president of the China Association of Social Security, said that if automation replaces 70 percent of manufacturing jobs — a plausible scenario given the current technological trends — workers displaced by robots may receive lower welfare benefits during their transition to new roles.

"Traditional social insurance relies on payroll deductions from employers and employees. However, as robots replace human workers, the contribution base shrinks," said Zheng, who is also a professor at Renmin University of China in Beijing.