Impact of AI on China’s Job Market

In recent years, the adoption of artificial intelligence (AI) has profoundly affected China’s job market. Government policies actively support AI, leading to widespread implementation and resulting in significant changes for workers like computer programmer Fei Zhaojun. After his employer questioned the future of humans in coding roles, Fei, along with 160 colleagues, lost his job in Beijing.

This surge in AI integration raises concerns about the stability of China’s economic power. AI is finding use across various sectors, from coding to more physical tasks. Many workers are either displaced or worried about future job security. China is at the forefront of AI adoption as policies encourage its use across all areas of life. People like Fei are adapting to this new landscape.

According to Shujing He, a senior analyst at Plenum, there’s minimal resistance to AI in China. Individuals concerned about job displacement are exploring AI-driven enterprises. Despite initial skepticism, Fei acknowledges that mid-level coding roles are vulnerable to AI replacement. During a break from traditional employment, Fei now produces short vlogs about daily life, hoping they resonate with others.

Translator Du Qinchun has embraced AI by aiding its development in language translation. While this involvement temporarily boosts his workload, it comes with reduced pay. AI-based translation tools have decreased the appeal of traditional language studies.

A market intelligence firm, IDC, reported a significant increase in AI use within Chinese industrial enterprises, rising from under 10% in 2024 to nearly 50% last year. Open-source AI ecosystems spur innovation, closing the gap between base capabilities and practical enterprise applications.

Humanoid robots are gradually performing tasks like sorting parcels, directing traffic, and making coffee. Delivery robots are becoming common, threatening millions of food delivery jobs. Generative AI is also reshaping the production and distribution of short drama content, reducing the need for specialized training in software and multimedia creation.

The International Labor Organization highlighted that women may face a higher risk of losing jobs due to AI, as they often work in automatable sectors like electronics assembly.

Under China’s ‘AI Plus’ initiative, the government aims to integrate AI across industries by 2030. This initiative aims to enhance China’s position in the global technology competition, especially with the U.S. However, economic growth is slowing, partly due to reduced consumer spending linked to job insecurity. The downturn in the housing market further impacts household wealth.

Chinese tech industries, although innovative, may not generate ample new jobs. Eswar Prasad from Cornell University warns that while AI might boost productivity, it risks worsening employment challenges, affecting social stability. Similar to the U.S., Chinese tech companies are restructuring, resulting in job cuts. The uncertainty in the job market persists, with urban unemployment around 5%, but significantly higher among young adults.

In the long term, some experts suggest that aging demographics could decrease unemployment as automation helps compensate for a shrinking workforce, as noted by Xuenan Cao from San Francisco Bay University.

Wang Zhicheng, a former scriptwriter for educational animations, turned to independent projects after layoffs. Despite AI aiding efficiency, the content lacked originality and consistency. Wang now focuses on creating children’s books, viewing AI as a tool rather than a threat.

Meanwhile, high school chemistry teacher Yang Zheng sees AI as a helpful tool for students rather than a threat. Although AI may make errors, it offers real-time assistance for student inquiries, fostering learning opportunities.

This coverage was contributed by Fu Ting from Washington, with AP video producer Wu Jia in Beijing.