China is rapidly integrating artificial intelligence into its manufacturing sector, significantly boosting automation and reducing unit costs. In 2024, the country installed nearly 295,000 industrial robots, vastly outpacing the U.S. This technological shift is expected to exert disinflationary pressures on global trade and foreign exchange markets. The expansion of AI-driven production lines, 'lights-out' factories, and automated ports is supported by policy incentives and minimal union resistance. This development strengthens China's role as a global production hub and could influence foreign exchange dynamics, commodity prices, and equity markets, particularly benefiting automation and robotics firms.