China is accelerating the adoption of artificial intelligence across its economy, with policymakers arguing that the technology can generate new jobs and help revive economic growth despite global concerns about automation replacing workers. The strategy was detailed during the country’s annual parliamentary session and reported by Reuters.
Officials say AI could play a central role in addressing long-term economic challenges, including an aging workforce and slowing productivity. Government plans emphasize the technology’s potential to support job creation over the next five years while expanding its use across multiple industries.
Human Resources Minister Wang Xiaoping said the government aims to “actively leverage” artificial intelligence to expand employment opportunities, particularly for the roughly 12.7 million university graduates expected to enter the job market this year.
Analysts say Beijing’s approach prioritizes rapid adoption of AI technologies before addressing possible labor market disruptions.
Economic strategy built around AI expansion
China’s push comes as the country faces mounting demographic and economic pressures. Around 300 million people are expected to retire within the next decade, placing additional strain on the pension system.
At the same time, the government has set a GDP growth target of between 4.5% and 5% — the lowest range since the 1990s — while youth unemployment remains elevated.
The International Monetary Fund estimates that artificial intelligence could affect nearly 40% of jobs globally, and up to 60% in advanced economies. Research from Stanford University has also suggested that AI is already having a significant impact on new entrants to the U.S. labor market.
Some economists remain skeptical about Beijing’s optimism. Alicia Garcia-Herrero, chief Asia-Pacific economist at Natixis, warned that automation could push wages lower and worsen youth unemployment unless governments strengthen social protections.
“If China does not introduce any kind of universal basic income, there is no way the Chinese population can cope with this shock,” she said.
Universities and industries prepare for AI transition
Chinese universities are already adjusting their curricula to prepare students for an AI-driven economy. ShanghaiTech University recently introduced specialized “micro-majors” focused on artificial intelligence, combining technical training with skills such as creativity, critical thinking and cross-disciplinary analysis.
Provost Yin Jie said the goal is to prepare students for tasks that machines struggle to replicate. “We must train them to ask questions,” he said. “If your thinking isn’t sharp, you won’t beat the robots.”
Government and industry leaders also expect AI to reshape traditional sectors. Zhu Huarong, chairman of state-owned automaker Changan Automobile, said the technology could transform the automotive industry into what he described as a new “sunrise industry.”
China’s latest five-year plan calls for artificial intelligence to expand beyond manufacturing into services and other sectors. Authorities are developing industry-specific AI systems and deployment strategies designed to accelerate adoption.
Still, some Chinese academics caution that job losses may appear before new opportunities emerge. Labor economist Cai Fang warned that automation could create long-term employment shocks as companies restructure their workforces.
Although Chinese law prohibits firing workers solely to replace them with AI, emerging technologies such as robotaxis and autonomous delivery systems are already beginning to challenge certain types of employment.
For many workers, the rapid spread of AI tools reflects both optimism about future opportunities and anxiety about the pace of economic change.
