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Chinese court says AI displacement is no excuse for firings

May 3, 2026, 6:14pm EDT
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A person receives a can of soda from a humanoid robot at an Agibot booth during the World Artificial Intelligence Conference in Shanghai
Go Nakamura/Reuters

A Chinese court ruled that companies can’t use AI as a justification for getting rid of employees.

The ruling last week sided with a tech worker who was fired after refusing to accept a demotion when his job was automated by AI.

The decision, which legal scholars said is a landmark moment for labor protections in China, comes as Beijing looks to balance its support for AI innovation with job market challenges.

The Chinese public has been seen as relatively open to the technology, but a wave of AI-driven anxiety has emerged, centered around its potential to displace workers, experts say.

One state media commentator warned that employees shouldn’t become “fish on a chopping block.”

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