Published by ChinaMNC ยท Mengshan
China's AI and Employment Policy: What Foreign Founders Should Know
A State Council office opinion sets out how China aims to expand AI-related jobs, support SMEs, develop new occupations and manage workforce transition risks as artificial intelligence spreads across the economy.
Why this policy matters for foreign founders
China's State Council General Office has issued an opinion on adapting to artificial intelligence development while building an employment-friendly development model. For foreign founders registering or operating a company in China, the document signals where authorities intend to direct support: AI-enabled job creation, small and medium enterprise upgrading, new occupations and skills training, and risk management for workers affected by automation. The text is a policy framework, not a set of specific entitlements, so founders should treat it as direction for local implementation rather than a guarantee of particular benefits.
Expanding AI-related employment
The opinion calls for deeper implementation of the "AI Plus" initiative. Eastern regions are encouraged to host core AI industries, while central and western regions are guided to take on related upstream and downstream activities such as data annotation and intelligent terminal manufacturing. Authorities aim to cultivate AI-native enterprises and specialized, refined, distinctive and innovative "little giant" firms. Eligible companies may be included in special loan programs that support financial assistance to enterprises for stabilizing and expanding employment.
Support for smaller firms
A startup support plan for AI small and medium enterprises is envisaged, with open-source ecosystems used to encourage innovation. The document calls for public digital transformation services, including lightweight and low-cost digital products and solutions. Small and medium enterprises and individual businesses should be able to use data, algorithms and other intelligent production factors on an equal basis in accordance with the law. Lowering the threshold for AI adoption is intended to strengthen their capacity to absorb employment.
New startup models
Government investment funds, including the national venture capital guidance fund and the national AI industry investment fund, are to support innovative AI firms on a market-oriented basis. The opinion also envisages high-level open-source AI communities and quality open-source projects, alongside entrepreneurship models that combine scientific and technological achievements, industrial development, vocational skills and livelihood needs with startup activity. Startup support policies and incubation services are to be provided for projects involving AI application scenarios and technology transfer.
New occupations and traditional sectors
Authorities intend to accelerate the development of new occupations and publish new occupational standards as AI scenarios are cultivated and applied at scale. The document specifically mentions growing demand for digital management professionals, AI engineering technicians and AI trainers. Localities are encouraged to add relevant professional titles for evaluation and to carry out AI-related vocational skill level recognition.
In traditional sectors, the policy promotes human-machine collaboration in the intelligent development of industrial factors and the digital transformation of agriculture. It also calls for AI-driven service models, extending producer services toward specialization and higher value-chain positions, and expanding service consumption scenarios such as experiential and personalized consumption.
Managing displacement risks
The opinion acknowledges that AI applications may replace some labor. It calls for prioritizing AI deployment in positions facing labor shortages or high environmental risk. In labor-intensive industries, the scope, intensity and pace of AI application should be handled prudently to reduce impacts on workers. Enterprises are encouraged to explore unemployment buffer periods, giving affected workers advance notice and offering transition and reassignment support during large-scale AI deployment.
Assessment and monitoring
A employment risk assessment mechanism for AI applications is proposed. For market access projects that could cause significant employment shocks, employment risk assessments would be conducted alongside project review. Relevant departments are to coordinate transition and reassignment support. The document also calls for cross-departmental sharing of AI industry and employment data, regional and sectoral monitoring models, and inclusion of AI-related employment risks in mechanisms for preventing and resolving large-scale unemployment risks.
Talent, training and services
Universities and vocational schools, including technical schools, are encouraged to adjust disciplines dynamically, prioritize urgently needed AI disciplines, build interdisciplinary programs and add AI "micro-majors." Joint school-enterprise training is encouraged, with leading technology enterprises participating in curriculum development, teacher training and teaching facilities. AI education is to be promoted across all stages, with students gaining practical experience in enterprises and engineers teaching in schools.
A special AI training plan is proposed under the "Skills Light Up the Future" initiative. Localities are encouraged to offer project-based and order-based digital skills training aligned with AI market demand, targeting groups such as college graduates, migrant workers and unemployed persons. Public training bases, enterprise training bases and high-skilled talent training bases may host AI skills training. Public-interest courses are to be offered through national smart education and skills platforms, and AI-related competitions encouraged within existing vocational skills contests.
Smart employment services
The document calls for intelligent identification mechanisms for policy implementation, smarter matching of job policies to service recipients, and upgrades to national employment information resources, the national college student employment service platform and the "China Employment" public service platform. It also encourages AI-enabled human resources services, including job-matching models, intelligent interviews and virtual reality training.
Worker protections and social security
For workers affected by AI-driven displacement, the opinion calls for targeted career guidance, skills training, job referrals and startup support, with unemployment insurance benefits paid promptly and in full to eligible insured unemployed persons. It calls for research on protecting workers' basic rights in human-machine collaboration, stronger consultation and coordination mechanisms, and enforcement of rights to remuneration, rest and leave, and occupational safety and health. The use of AI in human resource management is to be regulated, with action against employment discrimination, false recruitment and privacy or rest-right violations caused by algorithm misuse.
Social security is to become more flexible and inclusive, with encouragement for flexible workers and new employment form workers to participate in urban employee basic pension insurance and expansion of occupational injury protection pilots. The document also addresses income distribution, encouraging pay systems suited to AI professionals, skills-based minimum wage guidance, and greater enterprise investment in public-interest AI technology, services and open-source communities.
What founders should watch
- Local implementation: Many measures are directed at local governments and departments, so specific support will depend on local rules and procedures.
- Eligibility: Loan support and other measures are generally framed for eligible enterprises or individuals under applicable regulations.
- Compliance: AI use in recruitment and human resources management is explicitly flagged for regulation, including algorithm-related discrimination and privacy issues.
- Workforce planning: The policy encourages advance notice and transition support when AI deployment affects workers.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.