1.

0 Background of Study

Industrial revolution is defined as the use of sophisticated machinery to make the work
of humans easier and faster. The first industrial revolution happened at the end of the
18th century (1760-1840) where it was initiated by the creation of steam-powered
engines to replace human power and animals. One of the industries that gained from
such changes is the textile industry.
The second industrial revolution dates between 1870 and 1914 where division of
labor, electricity and mass production were introduced.The electrification of factories
contributed hugely to production rates while the mass production of steel helped to
establish railways into the system. However, aside from mass production, such
revolution approaches to industry had to be put to an end at the beginning of World
War I.
The third industrial revolution is another major leap in the field of science and
technology that began in the 1950s. Perhaps, the third industrial revolution is much
more familiar to us. This revolution is often referred to as the Digital Revolution where
usage of electronics and IT systems were introduced during that period. The third
revolution was, and still is a direct of the big development in communication technology
and computers and information.
The fourth industrial revolution, or most commonly known as IR 4.0, has been a hot
subject among the academics, politicians and business leaders ever since it was first
introduced in 2011 by the German Government. It was an initiative to strengthen the
German competitiveness in the manufacturing industry. Thanks to the digitization of
manufacturing, we are in the middle of a significant metamorphosis regarding the way
we generate products. In essence, IR 4.0 is the direction towards automation and data
exchange in manufacturing technologies and processes which consists of artificial
intelligence (AI), cognitive computing, cloud computing, Internet of Things (IoT) and
cyber-physical systems (CPS). According to Dr. Rafiq Idris (2018), an Economist and a
Senior Lecturer Financial Economics Program in University of Malaysia Sabah, IR.4.0 can
be defined as an infrastructural advancement brought about by the automation of
human activities through software. IR 4.0 has also been described as a world where
individuals move between digital domains and and offline reality with the use of
connected technology to enable to manage their lives (Schwab, 2015). IR 4.0 is
expected to change the way we live, communicate and work.
According to a new report by PwC , there is one country where Industry 4.0’s effect
will be far from neutral. This is the country where data from 1.4 billion people can
develop AI systems, not burdened by data privacy regulations and is automating quicker
than any nation on Earth: China. It is also reported that AI, drones, autonomous
vehicles, and robotics will increase human employment over the next two decades by a
figure that is one and a half times the size of the UK population.
By 2037, 3 million jobs could be added to China’s economy and that is a net
increase of 12%. That is almost twice the number of new jobs that the WEF predicted
would be created worldwide by 2022. However, the big net gain only impacts the
services sector. As China becomes more innovative, there will be continuous demand for
manufacturing technologies such as drones, autonomous vehicles, and drones. The
focus of our study is the implication of IR 4.0 towards export in China from 1988 until
2019.
References

Idris, R. (2018, January 14). IR 4.0: The Way Forward. Retrieved from
http://eprints.ums.edu.my/18567/1/IR%204.0.pdf

Middleton, C. (2018, September 24). Why China gains most from the Fourth Industrial
Revolution – according to PwC. Retrieved March 26, 2020, from
https://diginomica.com/why-china-gains-most-from-the-fourth-industrial-revolution-
according-to-pwc

Schwab, K. (2015). The Fourth Industrial Revolution: What it means and how to respond.
Retrieved from https://www.foreignaffairs.com/articles/2015-12-12/fourth-industrial-
revolution.

Wright, I. (2017, August 29). What Does Industry 4.0 Look Like in China? Retrieved
March 26, 2020, from https://www.engineering.com/AdvancedManufacturing/ArticleID
/15555/What-Does-Industry-40-Look-Like-in-China.aspx