AI reshapes China's job market as workers adapt to displacement
As AI adoption accelerates in China, workers face job losses and pay cuts, while some pivot to new ventures.
In Beijing, computer programmer Fei Zhaojun was laid off along with about 160 colleagues just two weeks after his boss asked whether AI could replace human coders. His story reflects a broader trend across China, where government-backed AI adoption is rapidly transforming the job market, leaving many workers anxious about their futures.
China is at the forefront of AI integration, with policies encouraging the use of AI applications and robotics across industries. Unlike in some other countries, there is little anti-AI sentiment, according to Shujing He, a senior analyst at advisory firm Plenum. Many workers, even those who have lost jobs, are eager to experiment with AI-enabled businesses and independent ventures.
Fei, 40, now makes vlog-style videos during a career break. He acknowledges that mid-level coding jobs are largely replaceable, and he is trying to adapt by using AI as others do. Similarly, Du Qinchun, a part-time translator in Chengdu, has been training AI models for translation work, which has brought him temporary assignments, though industry pay has dropped by more than half.
The impact extends beyond tech jobs. AI-powered translation tools have made foreign language programs less popular in colleges. In industrial settings, the share of enterprises using AI models jumped to 47.5% last year from 9.6% in 2024, according to IDC. Humanoid robots now sort parcels, direct traffic, and make coffee, while food delivery robots threaten millions of jobs. Generative AI has also slashed the production of live-action short dramas by about 75% in the first quarter of this year.
Women face higher displacement risks, as they are more likely to work in roles suitable for automation, such as electronics assembly, according to the International Labor Organization. Meanwhile, China's "AI Plus" initiative aims to infuse AI across the economy, intensifying competition with the U.S.
Economists warn that while AI may boost productivity, it could worsen employment growth and social stability. China's urban unemployment rate hovers around 5%, but for youth aged 16-24, it is roughly triple that. However, some experts note that automation could offset the challenges of a rapidly aging population. By 2050, China will have fewer than two working-age adults per retiree, and AI might help fill the gap.
Workers like Wang Zhicheng, a former scriptwriter, are finding new paths. After his company cut half of its scriptwriters, Wang started his own studio making illustrated children's books. He views AI as a tool, not a replacement, emphasizing that humans still make the final decisions. High school teacher Yang Zheng also sees AI as a helpful resource for students, despite its occasional errors.
As China's economy slows and consumer spending lags, the full impact of AI on jobs remains uncertain. Yet many workers are learning to coexist with the technology, hoping to carve out new opportunities in an evolving landscape.