Computer programmer Fei Zhaojun's boss asked him whether artificial intelligence could soon replace humans in coding jobs. Two weeks later, he was laid off from his position in Beijing alongside approximately 160 colleagues, according to reports from the Associated Press.
The scenario reflects a broader trend as AI, encouraged by government policies, transforms China's massive labor market. Some economists warn that widespread job displacement could eventually undermine the strength of the world's second-largest economy, even as others argue the technology may help offset population decline.
What the Right Is Saying
Critics and some economists express concern about the pace of displacement without adequate safety nets. Eswar Prasad, professor of economics and trade policy at Cornell University, warned that while AI may boost productivity, its impact on employment could prove severe.
"AI is likely to lift productivity across the board but could have a severe disruptive effect on employment, worsening the employment growth problem and resulting in a detrimental effect on social stability," Prasad said.
The displacement extends beyond knowledge workers. Humanoid robots are now sorting parcels in postal centers, directing traffic, and making coffee. Food delivery robots are gaining ground across China, potentially threatening the livelihoods of millions of delivery workers.
Conservatives note that China's tech giants have cut tens of thousands of jobs amid AI restructuring, mirroring layoffs at American competitors. They argue that rapid automation without corresponding job creation could exacerbate social tensions in an already slowing economy.
What the Left Is Saying
Progressive analysts and labor advocates in China point to opportunities emerging from the AI transition. Shujing He, a Beijing-based senior analyst at advisory firm Plenum, noted that individuals worried about replacement often show remarkable adaptability.
"Individuals who worry about being replaced, as well as those who have already left traditional workplaces, are often eager to experiment with AI-enabled businesses and independent ventures," He said. "The level of interest is striking."
Du Qinchun, a part-time translator based in Chengdu, has embraced the shift by helping train AI models for translation work. While he acknowledges industry wages have dropped significantly, he has found additional employment opportunities through the transition.
Wang Zhicheng, 32, lost his scriptwriting job but chose to launch an independent studio creating illustrated children's books. "You can treat AI as a tool just like Word," Wang said. "Humans are still the decision makers on which one to pick or pursue among all that AI generates."
Some argue China's government-backed approach provides infrastructure for workers to adapt, with programs encouraging AI literacy and entrepreneurship across industries.
What the Numbers Show
The adoption rate among 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.
Short drama production fell approximately 75% in the first quarter compared with a year earlier as generative AI increasingly handles creation, production, and distribution tasks.
China's overall urban unemployment rate stands around 5%, but unemployment for workers aged 16 to 24 excluding students is roughly triple that figure. Translator wages have dropped more than 50% from levels seen several years ago.
Demographic projections show China will have fewer than two working-age adults supporting each retiree by 2050, compared with more than 2.5 in the United States, according to Xuenan Cao, professor at San Francisco Bay University who studies technology and society.
The International Labor Organization found women face higher risks of job loss from AI adoption because they tend to work in sectors more suitable for automation, such as electronics assembly, while remaining underrepresented in science and technology fields.
The Bottom Line
China's government has made AI integration a national priority through its "AI Plus" initiative and five-year plan running through 2030. Officials view the technology as essential to maintaining economic competitiveness against the United States and offsetting demographic challenges from an aging, shrinking population.
The transition presents a dual reality: workers in fields like programming, translation, and content creation face immediate displacement pressure, while entrepreneurs and adaptable professionals seek new revenue models using AI tools. Economists will be watching whether productivity gains translate into sufficient job creation to absorb those displaced across China's 1.4 billion-person economy.