China’s manufacturing sector is undergoing rapid industrial upgrading, with automation driving demand for new occupational profiles and technical workers capable of managing complex production lines. Traditionally organized as a state-oriented labor regime, China’s skill formation system now faces mounting pressure to adapt. Drawing on extensive fieldwork conducted between 2017 and 2023 in the automation industry, this article examines three main pathways of skill formation—enterprise-based on-the-job training, conventional vocational education, and commercial training offered by professional institutions—and analyzes the distinct roles of the state, firms, and private providers in this process. This article argues that a purely state-led approach is insufficient to meet current industrial needs, advocating instead for a more balanced model that combines policy guidance with market participation to better align worker skills with technological advancements. The findings contribute to broader debates on the political economy of skill formation and underscore the need for further research on the institutional dynamics of workforce development in late-industrializing economies. © 2025 Chinese University of Hong Kong Press. All rights reserved.
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