And don't forget that the government of a country with 1340 M people, has an enormous incentive to keep the status quo. If automation destroys hundreds of thousands of jobs, it's a recipe for chaos. The ones ruling China, surely want to keep people working with low wages, so they can be replaced easily if they start causing trouble. Having hundreds of thousands, or millions of unemployed people is by far much more dangerous for them, than loosing a few bucks per phone by not automating the process.