Computer programmer Fei Zhaojun's boss asked him if artificial intelligence could soon replace humans in coding jobs. Two weeks later, he was laid off from his job in Beijing, together with about 160 of his colleagues. It's an increasingly common scenario as AI, supported by government policies, reshapes China's massive job market.
The rapid adoption of AI in many fields—from computer programmers to script writing and physical tasks—is pushing people out of their jobs or leaving them afraid that it might. China is at the vanguard of AI adoption as government policies encourage people and businesses to use AI applications and robotics across all aspects of life, forcing workers like Fei to figure out how to adapt.
What the Left Is Saying
Progressive economists and labor advocates point to the human cost of China's aggressive AI deployment. Eswar Prasad, a professor of economics and trade policy at Cornell University, said AI could have "a severe disruptive effect on employment, worsening the employment growth problem and resulting in a detrimental effect on social stability." He noted that while China's tech industries may be innovative with high productivity, they may not generate many new jobs.
A report from the International Labor Organization found that women face higher risks of losing employment due to AI than men. Women tend to work in areas more suitable for automation, such as assembling electronics, and remain underrepresented in science and technology fields—compounding existing gender disparities in the workforce.
Shujing He, a Beijing-based senior analyst at advisory firm Plenum, said workers who worry about being replaced "are often eager to experiment with AI-enabled businesses and independent ventures." She noted that individuals displaced from traditional workplaces are seeking new economic paths, though success is far from guaranteed. The transition underscores broader concerns about income inequality as AI concentrates wealth among tech companies while displacing middle-skill workers.
What the Right Is Saying
Conservative analysts and government supporters emphasize China's competitive position in the global technology race. Under China's "AI Plus" initiative and its five-year plan through 2030, the government is pushing to infuse AI across many industries to gain an edge over the United States. Zilan Qian, a research associate at Oxford China Policy Lab, said "what is specific to China is that the government is really into diffusing AI across the economy, so AI may get into different domains more quickly compared to other countries."
Yanze Du, an IDC senior research manager in Beijing, highlighted productivity gains from open-source AI models. "China's vibrant open-source model ecosystem fosters greater AI application innovation in industrial settings, gradually closing the gap between foundational model capabilities and real-world enterprise value creation," he said. Supporters argue this investment will pay dividends as China's workforce shrinks due to an aging population.
Xuenan Cao, a professor at San Francisco Bay University whose research focuses on technology and society, noted that by 2050 China is projected to have fewer than two working-age adults to support each retiree, compared with more than 2.5 in the United States. "Automation could partially offset a shrinking workforce rather than being purely a threat to it," Cao said.
What the Numbers Show
The share of Chinese industrial enterprises using AI models and agents jumped to 47.5% last year from 9.6% in 2024, according to market intelligence firm IDC—a nearly fivefold increase in adoption within one year.
In China's short drama industry, generative AI is increasingly used for creation, production, and distribution. The number of live-action short and vertical video series designed for mobile phones fell about 75% in the first quarter of this year compared with a year earlier, according to Chinese media reports.
China's overall urban unemployment rate hovers around 5%. However, unemployment for people aged 16 to 24, excluding students, is roughly triple that rate—highlighting particular vulnerability among younger workers entering the labor market. Meanwhile, some sectors have already seen dramatic wage impacts: Du Qinchun, a part-time translator in Chengdu, said "the pay in the industry has been cut by more than half compared to what it was years ago."
The Bottom Line
China's aggressive push to integrate AI across its economy—supported by government policy and rapid technological adoption—is creating both opportunities and significant disruptions for workers. While some, like former scriptwriter Wang Zhicheng who launched his own studio making picture books, are finding new ways to use AI as a tool rather than a threat, others face wage cuts or job losses with uncertain paths forward.
The economic effects remain mixed in the near term: productivity gains for companies coexist with layoffs, reduced pay in certain industries, and heightened anxiety about employment stability. Consumer spending has lagged partly due to people becoming reluctant to spend because they're worried about losing their jobs—adding to existing economic challenges from a prolonged housing market downturn.
Looking ahead, China's aging population may eventually make AI-driven automation a necessity rather than a choice. What remains uncertain is whether the transition will create enough new opportunities to offset the displacement occurring now—and how quickly workers can adapt their skills to an economy increasingly shaped by artificial intelligence.