In a light-filled workshop in eastern China, a robotic arm moved a partially assembled autonomous vehicle as workers calibrated its cameras, typical of the incremental automation being adopted even across smaller factories in the world’s manufacturing powerhouse.China is already the world’s largest market for industrial robots, and the government is pouring billions of dollars into robotics and artificial intelligence to boost its presence in the sector.

The first essentially humanlessfactoriesare already in operation, even as widespread automation raises questions about job losses as well as the cost and difficulty of transition for smaller and medium-sized companies. The answer for many is a hybrid approach, experts and factory owners told AFP. At the autonomous vehicle workshop, manager Liu Jingyao told AFP that humans are still a crucial part of even technologically advanced manufacturing. “Many decisions require human judgement,” said Liu, whose company Neolix produces small van-like vehicles that transport parcels across Chinese cities. “These decisions involve certain skill-based elements that still need to be handled by people.”At the Neolix factory, 300 kilometres (186 miles) north of Shanghai, newly built driverless vehicles zoomed around a testing track simulating obstacles including puddles and bridges.In a closed-off room, workers assembled vehicles’ “brains”, testing their cameras and computer chips.“Automation… primarily serve(s) to assist humans, reducing labour intensity rather than replacing them,” Liu said.But Ni Jun, a mechanical engineering expert at Shanghai’s Jiaotong University, said China’s strategy of focusing on industrial applications for AI means full automation is already feasible in many sectors.Among others, tech giant Xiaomi operates a “dark factory” — where the absence of people means no need for lights — with robotic arms and sensors able to make smartphones without humans.– Digital divide –Ni described a “digital divide” between larger companies with the funds to invest heavily in modernisation, and smaller businesses struggling to keep up.For Zhu Yefeng’s Far East Precision Printing Company, part of China’s vast network of small independent factories employing up to a few dozen people each, full automation is a distant dream.At the company just outside Shanghai, workers in small rooms fed sheets of instruction manuals into folding machines and operated equipment that printed labels for electronic devices.The company used pen and paper to track its workflow until two years ago, with managers having to run around the factory to communicate order information.“Things were, to put it bluntly, a complete mess,” Zhu told AFP.The company has since adopted software that allows employees to scan QR codes that send updates to a factory-wide tracker.On a screen in his office, Zhu can see detailed charts breaking down each order’s completion level and individual employees’ productivity statistics.“This is a start,” Zhu told AFP. “We will move toward more advanced technology like automation, in order to receive even bigger orders from clients.”Financial constraints are a major barrier though. “As a small company, we can’t afford certain expenses,” said Zhu. His team is trying to develop its own robotic quality testing machine, but for now humans continue to check final products.– Employment pressures –The potential unemployment caused by widespread automation will be a challenge, said Jacob Gunter from the Berlin-based Mercator Institute for China Studies. “Companies will be quite happy to decrease their headcount… but the government will not like that and will be under a lot of pressure to navigate this,” Gunter told AFP.Beijing’s push to develop industrial robots will “intersect with the need for maintaining high employment at a time when employment pressure is considerable”, he added. Going forward, manufacturers must strike a balance “between the technical feasibility, social responsibility, and business necessity”, Jiaotong University’s Ni told AFP.Zhou Yuxiang, the CEO of Black Lake Technologies — the start-up that provided the software for Zhu’s factory — told AFP he thought factories would “always be hybrid”. “If you ask every owner of a factory, is a dark factory the goal? No, that’s just a superficial description,” Zhou said. “The goal for factories is to optimise production, deliver things that their end customers want, and also make money.”

NEW DELHI: After a massive nationwide operation, Central Board of Direct Taxes acted against several intermediaries involved in filing income tax returns with bogus claims of deductions and exemptions under the Income Tax Act.The move followed actions in July 2025, covering 150 premises, during which more than 102 suspicious RUPPs were identified for their role in facilitating bogus donation-linked deductions. Data analytics had flagged over 2 lakh taxpayers who claimed suspicious deductions under Section 80GGC, adding up to Rs 5,500 crore routed through suspicious or non-existent RUPPs and a similar amount of bogus donations to non-genuine charitable organisations, said officials.The enforcement findings have also prompted reversals of bogus deductions by taxpayers. Around 54,000 have already corrected their filings and withdrawn ineligible claims worth approximately Rs 1,400 crore and updated their returns after CBDT nudged them to revise their returns.Most of these taxpayers claimed deductions below Rs 5 lakh and a few companies claimed very high deductions.The exercise also revealed how intermediaries had established networks of agents to file returns with incorrect claims on commission basis. An intermediary was found to be advertising guaranteed refunds in cinema halls and on social media. It was found that there was a syndicate of professionals who was operating through WhatsApp and Telegram channels to find taxpayers looking at reducing tax liability through fake donations to RUPPs or charitable organisations.Instances of misuse of CSR-linked trusts, which facilitated bogus donation receipts in exchange for cash-back, were found during the probe.“It was observed that huge amounts of bogus claims have been made on account of donation RUPPs or charitable institutions and reduced their tax obligations and have also claimed bogus refunds.Evidence gathered from enforcement actions indicated that RUPPs many of which were non-filers, non-operational at their registered addresses, and are not engaged in any political activity were being used as conduits for routing funds, hawala transactions, cross border remittances and issuing bogus receipts for donations,” an official statement said.

Federal Finance Minister Senator Muhammad Aurangzeb on Saturday said that sustained, meaningful dialogue between the government and the business community is essential for finding workable economic solutions, stressing that engagement limited only to the annual budget cycle cannot address structural problems. Addressing the All Pakistan Chambers Conference hosted by the Lahore Chamber of Commerce and Industry (LCCI), he said constructive discussions have recently taken place between the federation and the provinces on the NFC Award, leading to the formation of eight working groups, with progress expected by January 15.

He added that the State Bank of Pakistan has received $1.2 billion following the approval of the International Monetary Fund (IMF) programme and invited the private sector to participate in the privatisation of Pakistan International Airlines (PIA). Aurangzeb also told participants that the IMF diagnostic and corruption report resulted from a transparency process initiated by the government itself, not one targeting any specific administration. He said an action plan is now being prepared to address the structural weaknesses highlighted in the report.

LCCI President Faheemur Rehman Saigol, speaking earlier, said that the cost of doing business had reached an unbearable level, creating an urgent need for industry-wide relief. He said the high policy rate and expensive electricity and gas were compelling industries to relocate abroad. He added that agreements with independent power producers (IPPs) should undergo forensic audit and electricity tariffs should be aligned with regional countries.

The LCCI chief said non-filers should be incentivised and integrated into the tax net while existing taxpayers should be facilitated. Calling for a simple and transparent tax system, he urged the abolition of unnecessary withholding taxes. According to him, Pakistan is facing a widening trade deficit, and exports can only grow if exporters are supported through the restoration of the Final Tax Regime and timely payment of duty refunds. Saigol further pointed to annual losses of around Rs850 billion incurred by state-owned enterprises (SOEs), calling them a major economic burden and arguing that immediate privatisation had become essential. He said investment in the country is at a 25-year low, stressing the importance of promoting domestic investment. He also sought collateral-free and cash-flow-based financing for SMEs to generate employment and increase exports.

Aurangzeb, continuing his address, said remittances remain the backbone of the economy and noted ongoing efforts to deepen the local bond market and deregulate commodity markets. He announced that the Pakistan Agricultural Storage and Services Corporation (PASCO) would be abolished, with strategic reserves to be maintained through the private sector. He said the Tax Policy Office has been separated from the Federal Board of Revenue and placed under the Finance Division to ensure long-term and stable policymaking. Acknowledging pressures on the formal sector and salaried class, he said action is being taken against non-compliant sectors. He stressed that only the private sector can drive economic growth, while the government’s role is to provide an enabling environment.

Aurangzeb said large-scale manufacturing has grown by 4%, IT exports have crossed $4 billion, and remittances are expected to reach $41-42 billion. He also mentioned steps related to PIA privatisation, crypto, blockchain and the digital economy, and proposed establishing a research cell at the Lahore Chamber.

SAARC Chamber Vice President Mian Anjum Nisar said extremely high electricity prices remain a fundamental concern.

LCCI Senior Vice President Tanveer Ahmed Sheikh said the FIR culture against traders must end, warning that if local investors do not feel secure, attracting foreign investment will be difficult. Presidents of the Chambers of Chaman, Quetta and Sarhad urged the opening of border trade, saying closures were hurting their exports to Central Asian states.