China pins hopes on society-wide AI push to add jobs
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admin
- March 12, 2026
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China’s scramble to adopt artificial intelligence will spawn new jobs and propel the world’s second-largest economy, say policymakers and company executives, as they downplay growing global fears that the technology could stunt employment. Plans unveiled at the opening of parliament’s annual session last week go all-in on AI, outlining ambitions to offset an ageing workforce and long-term economic slowdown through the technology’s “job-creation” effect over the next five years. “For now, advancing AI adoption and capability appears to be a higher policy priority than pre-emptively addressing potential job displacement,” said Shujing He, senior analyst at consultancy Plenum. She added the government’s focus on AI’s positive effects leaves room to respond later to any disruptive labour market impact. Human Resources Minister Wang Xiaoping said China was working to “actively leverage” AI to create jobs and expand opportunities for 12.7mn university graduates this year. The International Monetary Fund predicts AI will affect nearly 40% of global jobs, rising to 60% in advanced economies, while Stanford University researchers have found the technology is already having a “significant and disproportionate” impact on new US workers. Some analysts remain sceptical of Beijing’s optimism. “Automation has two major impacts: wages are being pushed down, and youth unemployment will continue to go up,” said Alicia Garcia-Herrero, chief Asia-Pacific economist at Natixis. “If China does not introduce any kind of universal basic income, there is no way the population can cope with this shock.” In a state-run CCTV broadcast during the parliament sessions, executives from Chinese state-owned enterprises — traditionally offering “iron rice bowl” job security — said AI would spark major restructuring within their organisations. Yet Changan Automobile chairman Zhu Huarong said he was optimistic that China’s AI drive would transform the automobile industry into a “sunrise industry” from a fading one. Chinese universities are already adapting. ShanghaiTech University has introduced AI “micro-majors” to teach skills machines cannot easily replace, such as critical thinking and creativity, said provost Yin Jie. “We must train them to ask questions,” he added. “If your thinking isn’t sharp, you won’t beat the robots.” China’s emphasis on reskilling and talent development reflects its strategy to align with shifting industry dynamics, said Wei Sun, principal AI analyst at Counterpoint Research, noting that policymakers view AI and labour not as a “zero-sum” rivalry but as mutually reinforcing. The push is also tied to demographic pressures: about 300mn people are set to retire in the next decade, threatening pension budgets. Last week, China set its lowest GDP growth target since the 1990s, at 4.5% to 5%, while youth unemployment remains high. Under its new five-year plan, Beijing aims to extend AI use beyond manufacturing into services, developing industry-specific models and rollout strategies. Still, concerns linger. “Job destruction often precedes and outweighs job creation,” wrote labour economist Cai Fang in a recent book. “Although technological progress will ultimately create new jobs, the high automation of AI may lead to long-term employment shocks.” He urged more investment in human capital and social welfareprotections. In a landmark labour ruling last year, a Beijing court said dismissing employees solely to replace them with AI was illegal. Yet robotaxis and autonomous delivery vehicles are already reducing traditional job demand, even on a small scale. State media have hailed Bytedance’s new video-generation model, Seedance 2.0, as a “singularity moment” for AI in film and television. Meanwhile, entrepreneurs are using AI agent OpenClaw to automate e-commerce shopfronts, forming so-called “one-person companies.” Local governments are now building industries around such tools. “From DeepSeek in 2025 to OpenClaw now, Chinese media have been hammering one narrative non-stop: learn this AI tool, get a high-paying job,” wrote technology analyst Poe Zhao. The viral craze highlights both excitement and unease about the future of work, added the founder of the Hello China Tech newsletter.
