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Why Graduates from China's Top Universities Are Choosing Factory Work

| Source: CNBC Translated from Indonesian | Economy
Why Graduates from China's Top Universities Are Choosing Factory Work
Image: CNBC

Beijing — Career trajectories for China’s top university graduates are shifting dramatically. Whilst finance and technology sectors have traditionally been the primary destinations for years, a growing number of graduates are now choosing to pursue careers in manufacturing instead.

Employment data from Tsinghua University demonstrates that the number of graduates entering the manufacturing and energy sectors surged 19.1% year-on-year for the 2025 cohort. The companies recruiting most heavily from the institution include Huawei, BYD, State Grid Corporation of China, and China National Nuclear Corporation. Huawei is a global telecommunications giant, whilst BYD is recognised as one of the world’s largest electric vehicle manufacturers. State Grid manages China’s national electricity network, and China National Nuclear Corporation leads the country’s nuclear industry.

This shift in career direction is not entirely new. Tsinghua University has recorded that the proportion of graduates entering manufacturing and energy sectors has increased for six consecutive years. In the 2024 cohort alone, the number of graduates joining these sectors rose 11% compared to the previous year.

The phenomenon is evident across other institutions as well. Employment statistics from Huazhong University of Science and Technology show that approximately 2,000 graduates from 2025 are working in information technology and 1,500 in manufacturing. This figure is substantially higher than graduates entering the financial sector, which numbered only around 300. According to a South China Morning Post report citing research from the MyCOS Institute, the proportion of Chinese graduates working in manufacturing increased from 17.9% in 2020 to 22.5% in 2024.

Experts attribute this transformation to China’s increasingly technology-driven industrial sector. Fu Fangjian, associate professor of finance at Singapore Management University, notes that industries such as semiconductors, electric vehicles, batteries, and renewable energy now require exceptional engineering talent. He further emphasises that these positions offer highly competitive salaries. “Many young graduates view this sector as an opportunity to work with cutting-edge technology, rather than traditional factory work,” Fu stated.

Zhao Litao, senior researcher at the East Asian Institute of the National University of Singapore, believes that manufacturing work now demands engineering capabilities, data science expertise, and systems integration knowledge. According to him, modern manufacturing is no longer viewed as blue-collar labour. “Advanced manufacturing is now regarded as a high-tech innovation sector involving robotics, semiconductors, advanced materials, and industrial artificial intelligence,” he explained.

Conversely, the technology and finance sectors have become less attractive. Hiring in the internet platform economy has slowed, whilst stricter regulation has increased uncertainty. Several major technology companies have even reduced their workforces. Alibaba, for instance, decreased its staff from approximately 250,000 employees in 2022 to around 124,000 in 2025. Baidu’s workforce declined 21.1% from its 2021 peak to 35,900 employees by the end of 2024.

Despite these conditions, demand for workers in the manufacturing sector remains elevated. The Chinese government estimates that nearly 30 million skilled manufacturing positions could remain unfilled in 2025.

Experts believe this change in graduate career direction is also influenced by government policy, which over the past decade has prioritised strategic sectors including electric vehicles, renewable energy, electrical equipment, and advanced materials through substantial investment and national research programmes. “These sectors have consequently become primary employers for engineering graduates,” Zhao noted.

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