Published by ChinaMNC · Weiyang

China’s AI Employment Policy: What Foreign Founders Need to Know

A practical guide for foreign entrepreneurs on China’s new AI employment framework, covering talent, training, risk assessment and compliance for company operations.

China’s Approach to AI and Employment: Key Points for Foreign Founders

China’s State Council has issued new policy guidance on adapting to artificial intelligence (AI) development while fostering an employment-friendly development model. For foreign founders building or operating companies in China, this framework signals how authorities will manage the labour-market impact of AI and what support mechanisms may be available. Below is a summary of the key measures, framed as practical guidance for your China operations.

1. Expanding AI-Related Jobs and Supporting Enterprises

The policy encourages the growth of AI-related employment across regions. Eastern regions are encouraged to develop core AI industries, while central and western regions are guided to take on upstream and downstream activities such as data labelling and intelligent terminal manufacturing. The government aims to cultivate AI-native enterprises and specialised “little giant” firms. Eligible companies may be included in special loan programmes for stabilising and expanding employment.

For small and medium-sized enterprises (SMEs), the policy promotes an AI entrepreneurship support plan and open-source ecosystems. Public digital transformation services will be strengthened, and SMEs are encouraged to adopt low-cost, lightweight digital solutions. The policy also calls for ensuring that SMEs and individual businesses can use data, algorithms and other intelligent production factors on an equal footing under the law.

2. New Business Models and New Occupations

Government investment funds, including the national venture capital guidance fund and the national AI industry investment fund, will support AI enterprises in a market-oriented manner. The policy envisions high-level open-source communities and projects to drive entrepreneurship and job creation. It also promotes models such as “scientific achievements + entrepreneurship” and “industry development + entrepreneurship.”

Authorities will accelerate the development of new occupations and standards, expanding demand for roles like digital managers, AI engineering technicians and AI trainers. Localities are encouraged to add related professional titles and conduct skill-level certification.

3. Using AI to Upgrade Traditional Sectors

AI is expected to help transform traditional industries. The policy encourages human-machine collaboration in industrial and agricultural digitalisation, and the development of AI-driven services. It supports extending producer services toward higher value-added segments and expanding consumer service scenarios, thereby increasing employment capacity in the services sector.

4. Mitigating Job Displacement

The policy calls for a prudent approach to applying AI in labour-intensive industries, with attention to the scope, intensity and pace of implementation. Enterprises are encouraged to explore unemployment buffer periods—informing affected workers in advance and providing transition and reassignment support when deploying AI at scale.

An employment risk assessment mechanism will be established. For AI application projects in market access that may cause significant employment impact, employment risk assessments will be conducted alongside project reviews, and authorities will coordinate transition support. Other AI projects may also undergo risk assessments as needed.

5. Talent Development and Training

Universities and vocational schools are encouraged to dynamically adjust curricula, rapidly establish AI-related majors and interdisciplinary programmes, and offer AI “micro-majors.” Enterprise-university joint training is promoted, with leading tech companies invited to participate in curriculum development and teaching. AI education will be advanced across all levels, including student internships and engineers teaching in schools.

A special AI training plan will be implemented. Localities are encouraged to offer project-based and order-based digital skills training aligned with market demand, targeting college graduates, migrant workers and unemployed persons. Public training bases and online platforms will provide more public courses. AI-related skill competitions will be encouraged.

6. Smarter Employment Services and Policy Delivery

The policy envisions using AI to improve policy implementation—intelligent identification of eligible beneficiaries and precise policy push. Employment service platforms will be upgraded with better data integration and analysis. AI will also be applied in labour dispute mediation and arbitration, and in HR services such as job-matching models, smart interviews and virtual reality training.

7. Worker Protection and Social Security

For workers affected by AI-related displacement, targeted job guidance, skills training, job referrals and entrepreneurial support will be provided. Unemployment insurance benefits will be paid on time and in full to eligible insured unemployed persons.

The policy calls for research on protecting workers’ basic rights in human-machine collaboration, improving consultation mechanisms, and ensuring enterprises protect workers’ rights to remuneration, rest and occupational safety. The use of AI in human resource management will be regulated, and illegal acts such as employment discrimination, fake recruitment and privacy violations caused by algorithm abuse will be addressed according to law.

Social security will be made more flexible and inclusive, encouraging flexible workers and new employment forms to participate in urban employee basic pension insurance and expanding pilot occupational injury protection.

8. Income Distribution and Risk Monitoring

Enterprises are guided to establish salary systems suited to AI professionals, with incentives oriented toward knowledge value. The policy also calls for improving minimum wage classification references for skilled workers and encouraging investment in public-interest AI technology and open-source communities.

Cross-departmental data sharing on AI-related industries and employment will be strengthened, with intelligent monitoring and early-warning models. Research on AI’s employment impact will be conducted, including special surveys and research centres. Employment risks from AI will be incorporated into mechanisms for preventing large-scale unemployment, with contingency plans and joint responses to labour relations risks.

Practical Takeaways for Foreign Founders

• Leverage support programmes: Check eligibility for special loan schemes and SME digitalisation support when setting up or expanding your China entity.
• Engage in talent development: Partner with universities and vocational schools for joint training and access to AI talent pipelines.
• Conduct employment risk assessments: If your AI application may affect jobs, be prepared for risk evaluations during project reviews.
• Ensure worker protections: Comply with labour laws, avoid algorithmic discrimination, and provide transition support when deploying AI.
• Use smart employment services: Utilise government platforms for recruitment, training and policy updates.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.