China bets on artificial intelligence to create jobs and rejuvenate economy amid global concerns

China Embraces Society-Wide AI Push as Economic Strategy

China has launched an ambitious society-wide AI push designed to transform its economy and employment landscape, betting that artificial intelligence will create more jobs than it destroys. Plans unveiled during the opening of parliament's annual session last week detail how the world's second-largest economy intends to leverage AI's "job-creation" effect over the next five years to counter an aging workforce and economic slowdown1

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. The strategy marks a decisive shift in how policymakers view technology adoption, with Human Resources Minister Wang Xiaoping stating that China is working to "actively leverage" AI to expand employment opportunities for 12.7 million university graduates this year2

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AI Policy Priority Over Job Displacement Concerns

The emphasis on artificial intelligence as an AI policy priority reflects Beijing's calculated gamble that productivity gains will outweigh potential disruption. "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 Plenum2

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. This approach diverges from global concerns, as the International Monetary Fund predicts AI will affect nearly 40% of global jobs, rising to 60% in advanced economies. Stanford University researchers have found the technology is already exerting a "significant and disproportionate" impact on labour market effects for U.S. job seekers2

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Rejuvenate Economy Through Transformation

China's drive to rejuvenate economy through AI stems from urgent demographic and fiscal pressures. About 300 million people are set to retire in the next decade, straining pension budgets, while the country set its lowest GDP growth target since the 1990s at 4.5% to 5%2

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. The new five-year plan calls for spreading AI into sectors beyond manufacturing, including services. Changan Automobile chairman Zhu Huarong told state-run CCTV during parliamentary sessions that he expects AI deployment to transform the automobile industry into a "sunrise industry" from a fading one2

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Talent Development and Reskilling Programs Take Center Stage

Chinese institutions are rapidly adapting to prepare workers for an AI-driven economy through talent development initiatives. ShanghaiTech University introduced AI "micro-majors" to impart skills AI cannot easily replace, such as cross-disciplinary learning, critical thinking and creativity. "We must train them to ask questions," said provost Yin Jie. "If your thinking isn't sharp, you won't beat the robots"2

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. Wei Sun, principal AI analyst at Counterpoint Research, noted that China is focusing on reskilling programs rather than framing AI and labour as a "zero-sum" trade-off2

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Skepticism and Automation Concerns Mount

Not all experts share the government's optimism about job creation. "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, who questioned whether China could manage without introducing universal basic income2

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. Prominent labour economist Cai Fang warned that "job destruction often precedes and outweighs job creation," adding that AI's high penetration may lead to long-term employment shocks requiring more investment in human capital and social welfare protections2

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Real-World Impact Already Visible

The effects of China's AI transformation are already materializing across industries. Bytedance's video generation model Seedance 2.0 has been hailed by state media as a "singularity moment" for film and television, while entrepreneurs use AI agent OpenClaw to automate e-commerce and create "one-person companies"2

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. Robotaxis and autonomous delivery vehicles are threatening jobs despite relatively small-scale deployment. Technology analyst Poe Zhao observed that "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," reflecting widespread anxieties over employment2

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. A Beijing court ruled last year that dismissing employees solely to replace them with AI is illegal, establishing some protections amid rapid technology adoption2

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