Rapid AI Rollout Raises Job-Loss Concerns in China

Speaking at Shanghai’s World AI Conference in July, Chinese President Xi Jinping described AI as “an important driver for shared prosperity and common security.” The report observed that this goal is being pursued against the backdrop of a fragile labour market.

China continues to face elevated unemployment, while tens of millions of workers have moved from formal employment into the gig economy. One think tank estimates that the number of people in flexible employment will rise to 320 million this year, up from 160 million in 2019 — roughly 44 per cent of the country’s workforce.

Downturns in sectors such as real estate and education have already pushed many workers toward ride-hailing platforms to sustain their incomes. The rollout of robotaxis, one of the more visible applications of AI already operating in China, now threatens those same livelihoods.

The report also cited the experience of cinematographer Tian Zemin, who has worked in Beijing’s film industry for nearly two decades and lost his position to AI tools. “I spent six gruelling years working my way up to become a cinematographer, only to be replaced by a piece of software,” he wrote in a social media post.

Some analysts argue that China’s significant state influence over the private sector could enable measures such as hiring quotas to limit the social impact of AI-driven displacement. However, the report noted that such protections may not arrive in time for workers currently losing their jobs.

The pace of AI adoption in China is highlighting a tension between technological advancement and labour market stability. While the technology is being positioned as a driver of long-term prosperity, its near-term effects on employment in both blue-collar and white-collar sectors are prompting closer scrutiny from workers, policymakers and observers.