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China tries to balances AI push with job displacement fears

May 27, 2026, 6:33pm EDT
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A paramilitary police officer crosses the street, with Beijing Central Business District skyline seen in the background
Maxim Shemetov/Reuters

China is trying to balance its society-wide AI push with mounting concerns over the tech’s disruptive socioeconomic effects.

Beijing’s vice premier was “shaken” after China’s largest employers warned him last year of AI’s potential impact on their workforces, The Wall Street Journal reported.

While policymakers have touted AI’s “job creation” effect, analysts expect China’s strained labor market to worsen in coming months, and the government is worried about the public worrying about losing jobs to AI, a China tech expert noted.

Beijing warned companies not to eliminate roles because of AI, and a court recently ruled that firms cannot lay off employees on AI grounds.

“A world anxious about an AI jobs apocalypse will be watching the Chinese experiment,” The Economist wrote.

Chart showing China’s youth unemployment rate
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