Despite China recording a massive export surplus and expanding its dominance in global manufacturing, many workers in the country’s industrial heartland are facing declining incomes and shrinking job opportunities, according to a detailed report by Bloomberg. The situation is particularly evident in Guangdong province, a region long regarded as the engine of China’s manufacturing economy.
Along the shopfronts of downtown Guangzhou, dozens of middle-aged day laborers now gather daily hoping to secure temporary work from nearby factories. Many wait for hours in the cold for recruitment agents who occasionally arrive on scooters offering short-term jobs at extremely low wages. One worker identified only by his surname Sheng said his income has dropped by more than half over the past few years, leaving him earning less than 100 yuan, or about $14, per day. According to him, some laborers are unable to find work for months and many remain at the hiring spots around the clock searching for opportunities.
The bleak situation stands in stark contrast to China’s booming export performance under President Xi Jinping. The country generated a record $1.2 trillion trade surplus last year even after tariffs imposed by former US president Donald Trump reached their highest levels in nearly a century. Governments from Europe to South America have warned that China’s expanding export power could overwhelm domestic industries in their own countries.
However, Bloomberg’s reporting indicates that ordinary workers in Guangdong are not benefiting from this export surge. Interviews with dozens of workers and factory owners describe a sharp deterioration in living standards, with falling wages and fewer stable jobs. In one clothing factory, a manager identified by the surname Yuan said her company recorded its first loss in 2025 after profit margins dropped to less than one yuan per item. She was forced to offer wages as low as 20 yuan an hour to workers sewing garments.
Much of the disconnect stems from a shift in China’s export structure. High-tech industries such as electric batteries, passenger vehicles, and semiconductors are now leading export growth, replacing traditional labor-intensive sectors like apparel, toys, and furniture. These advanced industries require far fewer workers, leaving many factory laborers struggling to find employment.
Analysts warn the transformation could accelerate as automation expands across China’s manufacturing sector. The rapid growth of artificial intelligence and robotics is already producing so-called “dark factories” where production lines operate with minimal human labor. According to researchers, more than two million industrial robots are now installed in China, exceeding the combined total used in all other countries.
The consequences are becoming visible across Guangdong’s labor market. Wage growth indicators compiled by Goldman Sachs show earnings growth in China hovering near its lowest level outside the COVID-19 pandemic. At the same time, surveys by the People’s Bank of China indicate that nearly 60 percent of respondents consider it difficult or uncertain to find a job, the highest level recorded since the survey began in 2011.
Many displaced workers have turned to gig economy jobs such as food delivery or ride-hailing, which now account for roughly 40 percent of urban employment. While these jobs provide income opportunities, they often lack benefits such as paid leave, medical insurance, and stable wages, limiting consumer spending and economic confidence.
The changing labor landscape has also contributed to rising worker dissatisfaction. Data from Freedom House shows a significant increase in labor protests across China last year, with Guangdong emerging as the country’s largest hotspot for worker unrest.
Economic challenges in the province have been compounded by a prolonged downturn in China’s property sector. Real estate investment, which once accounted for about 14 percent of Guangdong’s economy, has sharply declined in recent years. Industrial hubs that once thrived alongside the construction boom are now experiencing empty markets, shuttered businesses, and declining factory activity.
In the ceramics manufacturing center of Foshan, sales for one tile producer fell by more than half between 2023 and 2025, forcing the company to lay off around 180 employees. The owner has attempted to survive by shifting exports to Southeast Asia and the United States, but intense price competition and new factories in countries such as Vietnam have further squeezed profit margins.
Automation is also rapidly transforming major manufacturing facilities. At the Guangdong production base of smartphone maker Oppo, machines now produce a phone in just 12 hours compared to three days a decade ago when production relied more heavily on human labor. Only six workers are needed to assemble key electronic components that previously required around twenty employees.
While China continues to push forward with its strategy of advanced manufacturing and technological leadership, economists warn that the transition could place growing strain on social stability. Experts argue that the economic benefits of export growth and technological innovation are increasingly concentrated in capital-intensive industries, leaving many workers struggling to adapt.
For workers like those waiting in Guangzhou’s informal labor markets, the export boom offers little comfort. After an unsuccessful day searching for work, one older laborer summed up the sentiment shared by many across Guangdong: despite the country’s record exports, ordinary workers feel they are not sharing in the prosperity.
