This study provides a comprehensive, state-of-the art overview of technological upgrading in China and its labour implications. While developed economies are pursuing Industry 4.0, China is pursuing Industry 3.0 and 4.0 at the same time. While maintaining its dominance as an assembly station for global commodity chains, China has emerged as a manufacturer of parts and components, and has established global brands in some industries. In a context of dual shortage of both skilled and low-skilled workers and limited rolling-out of new process technologies, process upgrading has aggravated the shortage of skilled workers and has reduced the shortage of low-skilled workers. Product upgrading in leading industries has expanded skilled employment and increased those workers’ wages, but has not led to a reduction in working hours or significant improvement in job security and trade union representation. The Chinese Government has taken measures to streamline the education and training system to cater for the skills need of technological upgrading and has introduced other policies to harness the technological shock. However, the prospects for collective labour action to capture the gains enabled by technological upgrading are hardly promising.