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Illustration: Rebecca Zisser/Axios

JD.com, a Chinese e-commerce gargantuan, has built a big new Shanghai fulfillment center that can organize, pack and ship 200,000 orders a day. It employs four people — all of whom service the robots.

What's going on: Welcome to the creeping new age of automation. When the talk turns to Chinese big tech — rivals to Google, Amazon and the rest of Silicon Valley — the names usually cited are Alibaba, Baidu and Tencent. But scrappy JD, with a respectable $58 billion market cap, is investing aggressively to be added to the pantheon.

Its secret sauce, executives said this week in Beijing and Shanghai, is logistics — its creation of China's first east-to-west, north-to-south package delivery business, able to deliver a purchase the same day almost anywhere in the nation, as long as it's ordered by 11 a.m.

But to get faster and more reliable, just as important is automation: From smart warehouses that process orders, to self-driving trucks and drones to deliver them, JD's research and development team is working on ways to eliminate costly workers.

Why it matters: This is the future. Like JD, its fierce e-commerce rival Alibaba has also built an entirely automated warehouse, showing how retail will probably be done in years to come everywhere including the U.S. and Europe.

  • JD says its objective is not to eliminate workers but to get faster and more reliable, and that it will shift its warehouse people to other jobs.
  • Its new mantra is "retail as a service," in which it will sell the efficient methods it's developed to other companies.

The rap on JD has been that it is far less profitable than Alibaba. But JD responds that, as Jeff Bezos expanded Amazon, its logistics buildout is proof it is investing in itself.

  • "Everything is about scale," says CTO Chen Zhang, speaking with a small group of reporters at its Beijing headquarters.
  • "When you invest in technology, you don't worry about spending money. You worry whether you can get to scale. When scale comes, profit will come."

Get more stories like this by signing up for our twice-weekly robotics, AI and labor newsletter, Axios Future. 

Go deeper

Biden pollster urges blunt tax talk

Illustration: Aïda Amer/Axios

The top pollster for Joe Biden's presidential campaign is advising the White House to do something that often makes Democrats nervous: Talk loudly and proudly about raising taxes on the rich.

Why it matters: John Anzalone tells Axios his extensive polling and research has found that few issues receive broader support than raising taxes on corporations and people earning more than $400,000 a year.

On the front lines of the growing border crisis

A migrant mother and her children sit in the dirt at a temporary processing center under the Anzalduas International Bridge in McAllen, Texas. Photo: Stef Kight/Axios

At night, parents with young children march through the brush after crossing the Rio Grande River in the pitch black. By day, unaccompanied kids arrive at shelters, in one instance 17 of 17 testing positive for COVID-19.

Driving the news: Axios accompanied a delegation of Republican lawmakers to South Texas last week — followed by a unilateral visit to El Paso — to see in real-time the challenges fueled by a border surge, the effects of actions taken by the previous administration, and the lagging response by the new one.

Scoop: Trump campaign boosted by unsuspecting state GOPs

Illustration: Sarah Grillo/Axios

Federal regulators are probing financial reporting discrepancies stemming from an effort to funnel $75 million through state Republican parties to the national GOP effort to reelect Donald Trump, Axios has learned.

Why it matters: In comments to Axios and filings with the Federal Election Commission, some state party officials seemed unaware of their roles.

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