From chatbots and generative design tools to autonomous vehicles, artificial intelligence (AI) is rapidly reshaping how work is performed across China. While AI adoption is driving efficiency gains and industrial upgrading, it has also intensified concerns about job displacement—particularly among factory workers, designers, translators, and other skill-intensive roles.
Chinese policymakers and economists, however, argue that AI is not a net job destroyer, but a powerful force that is restructuring the labor market. By pairing technological advancement with workforce retraining and talent investment, China is seeking to cushion short-term disruption while laying the foundation for long-term, high-quality employment growth.
AI Is Transforming Jobs—Not Eliminating Them
Concerns about technology replacing workers are not new. Each major technological shift—from mechanization to automation—has sparked similar fears. According to labor market analysts, AI follows the same historical pattern: displacing certain roles while creating new industries, professions, and work models.
“AI boosts productivity and opens up space for new economic activity,” said Wu Jie, an analyst at DRCnet. “Even as some traditional jobs fade, new employment opportunities are emerging that did not exist before.”
In August 2025, the State Council released national guidelines for the “AI Plus” initiative, encouraging the integration of AI across sectors with strong job-creation potential. The policy emphasizes using AI to upgrade existing roles rather than replacing workers outright.
Global trends support this view. The World Economic Forum projects that by 2030, AI and data technologies will create 11 million new jobs worldwide, surpassing the roughly 9 million roles expected to be displaced.
China’s AI Industry Is Driving New Employment Demand
China’s AI core industry is nearing 600 billion yuan (about USD 85 billion) in scale, fueled by breakthroughs in large language models, algorithms, and deep integration with manufacturing, services, and biotechnology.
“Demand for AI-related talent is accelerating rapidly,” said Ding Zhuang, a researcher at the Chongyang Institute for Financial Studies at Renmin University of China.
Over the past five years, the Ministry of Human Resources and Social Security has officially recognized 72 new occupations, more than 20 of which are directly linked to AI. Each emerging occupation is expected to generate 300,000 to 500,000 jobs in its early stages.
Autonomous Driving Shows How Workers Can Transition
Autonomous driving illustrates how AI can reshape jobs rather than eliminate them. Instead of simply replacing drivers, robotaxi companies are creating new roles that blend operational experience with digital skills.
Firms operating autonomous fleets are hiring:
- Ground safety supervisors
- Vehicle testing specialists
- Dispatch and algorithm engineers
Notably, many of these positions prioritize former taxi, bus, and ride-hailing drivers—highlighting a retraining-first approach.
Zhang Chao, a former car leasing manager in Beijing, now works as a remote safety operator overseeing robotaxis. His role involves real-time monitoring and intervention when vehicles encounter unexpected road conditions.
“The factory floor is no longer just about wrenches and welding,” said Wang Hao of the China Center for Information Industry Development. “Workers are shifting toward system management, testing, and intelligent operations.”
Investing in Human Capital Becomes a National Priority
As AI reshapes skill requirements and job structures, China is accelerating investment in people. A nationwide skills-upgrading program through 2027 aims to provide subsidized training for over 30 million workers.
Education reforms are also underway. Schools have been instructed to strengthen AI education from an early age, helping students understand how technology interacts with society and work.
The concept of “investing in human capital” now appears frequently in government policy documents, including the 2025 Government Work Report and long-term economic planning frameworks. This reflects a strategic shift from labor-intensive growth toward innovation- and creativity-driven development.
“With an aging population, improving human capital is essential for transforming China’s demographic dividend into a talent dividend,” said Liu Mingxi of the Chinese Academy of Sciences.
Challenges Remain in the AI Employment Transition
Despite progress, experts caution that gaps still exist. University curricula often lag behind fast-moving AI applications, while mid-career workers face barriers to reskilling. More targeted support is needed for workers displaced by automation.
Gong Piming of the Chinese Academy of Macroeconomic Research has called for:
- Enhanced unemployment benefits
- Expanded retraining subsidies
- Stronger re-employment incentives
These measures aim to shorten the transition period for affected workers and reduce social friction.
Li Tao, a professor at Beijing Normal University, emphasized the need for multi-tier digital talent programs and lifelong learning systems, arguing that “AI training for all” should become a core element of workforce development.
Outlook: Balancing AI Innovation and Employment Stability
China’s approach to AI and employment reflects a broader strategy: embrace technological change while actively managing its social impact. By combining policy guidance, large-scale retraining, and sustained investment in human capital, China aims to ensure that AI becomes a driver of inclusive growth rather than widespread job loss.
As AI adoption accelerates, the success of this strategy will play a critical role in shaping China’s labor market—and may offer lessons for other economies navigating the same transformation.
