I wouldn't say they are failing in deploying robots, it's probably just not as easy as they thought but it is definitely having an impact. And you have to remember Chinese workers have been getting more expensive with 12% year over year for a number of years. So they aren't the cheapest workforce in the world any more. A lot of manufacturing of clothes moved to Bangladesh to name one country.
Here is an example of an article from 2007 which mentions the wage growth:
"Wages in China have nearly doubled over the past four years"
An article on where Foxconn is with building lights-off factories:
On Wednesday, the company’s CEO revealed Foxconn has a fully automated factory in operation in the Chinese city of Chengdu. “We haven’t talked much about the factory, but it’s manufacturing a product from a very famous company,” Gou said, without elaborating.
The factory can run for 24-hours with the lights off, he added. In addition, Foxconn has been adding 30,000 of its own industrial robots to its factories each year. “We don’t sell them, because we don’t have enough for our own use yet,” he added.
And an article on the loss of jobs in factories in China:
Automation has already had a substantial impact on Chinese factory employment: Between 1995 and 2002 about 16 million factory jobs disappeared, roughly 15 percent of total Chinese manufacturing employment. This trend is poised to accelerate.
That might not be a problem if the Chinese economy were generating plenty of higher-skill jobs for more educated workers. The solution, then, would simply be to offer more training and education to displaced blue-collar workers.
The reality, however, is that China has struggled to create enough white-collar jobs for its soaring population of college graduates. In mid-2013, the Chinese government revealed that only about half of the country’s current crop of college graduates had been able to find jobs, while more than 20 percent of the previous year’s graduates remained unemployed.
According to one analysis, fully 43 percent of Chinese workers already consider themselves to be overeducated for their current positions.