Published by ChinaMNC · Teng
China’s New AI and Employment Policy: What Foreign Founders Need to Know
China’s State Council has issued guidance to make AI adoption job-friendly. For foreign founders, this signals skills training, startup support, and risk assessment requirements that can affect hiring and operations in China.
China’s New AI and Employment Policy: What Foreign Founders Need to Know
The General Office of China’s State Council has released a policy opinion on adapting to AI development and building an employment-friendly development model. For foreign founders registering or operating a company in China, the document outlines how authorities plan to encourage AI-related job creation while managing displacement risks. Below is a practical summary of the key measures, based only on the source text.
1. Expanding AI-related employment
The policy calls for deeper implementation of the “AI+” initiative. Eastern regions are encouraged to build core AI industries, while central and western regions are guided to take on upstream and downstream activities such as data labeling and intelligent terminal manufacturing. The aim is to create new employment growth points in AI.
The government also plans to nurture AI-native enterprises and specialized “little giant” firms. Eligible companies may be included in special loan programs for stabilizing and expanding employment, creating more new jobs.
2. Support for SMEs and startups
An AI entrepreneurship support plan for small and medium-sized enterprises will be implemented, with open-source ecosystems used to promote innovation. Public digital transformation services will be strengthened, and development of “small, fast, light, precise” digital products and solutions is encouraged.
SMEs and individual businesses are to be guaranteed equal access to intelligent production factors such as data and algorithms. They are supported in exploring low-cost, lightweight intelligent upgrading paths to lower the threshold for AI adoption and improve their capacity to absorb employment.
Government investment funds, including the National Venture Capital Guidance Fund and the National AI Industry Investment Fund, will support AI companies’ innovation in a market-based manner. High-level AI open-source communities will be built, and entrepreneurship models combining scientific achievements, industrial development, vocational skills, and livelihood needs will be promoted.
3. New occupations and skills
The policy accelerates the development of new occupations and standards in AI. Demand for roles such as digital management professionals, AI engineering technicians, and AI trainers is to be expanded. Localities are encouraged to add relevant professional titles for evaluation and conduct skill-level certification for AI-related jobs.
Universities and vocational schools are encouraged to dynamically adjust majors, fast-track AI-related disciplines, and offer AI “micro-majors.” Joint school-enterprise training is emphasized, with leading tech firms participating in curriculum development and teacher training. AI education will be promoted at all levels, including student internships in enterprises and engineers teaching in schools.
A special AI training plan will be implemented under the “Skills Light Up the Future” action. Localities should align project-based and order-based digital skills training with AI market demand, encouraging college graduates, migrant workers, and unemployed persons to join AI employment and entrepreneurship training. Public training bases and enterprise training bases will be used for AI skills training, and public welfare courses will be offered on national education platforms.
4. Using AI in employment services
Authorities will explore intelligent identification mechanisms to push employment policies to relevant parties, improving “policy finding people” efficiency. AI will be applied in policy evaluation, fund management, and public communication.
National employment information resources, the national college student employment platform, and the “China Employment” public service platform will be upgraded with data aggregation and intelligent analysis. AI application pilot bases will be built, and AI will be deepened in labor dispute mediation and arbitration. Human resources service providers are encouraged to innovate products such as job-matching models, intelligent interviews, and virtual reality training.
5. Managing displacement and protecting workers
AI should first be applied in roles with labor shortages or high environmental risks. The scope, intensity, and pace of AI adoption in labor-intensive industries should be handled prudently to minimize impact on workers. Enterprises are encouraged to explore unemployment buffer periods, notify affected workers in advance, and provide transition and reassignment support.
An employment risk assessment mechanism for AI applications will be established. For AI application projects in market access areas that may cause significant employment impact, employment risk assessments will be conducted simultaneously during review. Other AI projects will conduct assessments as needed.
Support for affected workers includes targeted career guidance, skills training, job recommendations, and entrepreneurship support. Eligible unemployed persons will receive unemployment insurance benefits in a timely manner.
Labor rights protection will be strengthened for human-machine collaboration. Research on basic rights protection will be conducted, and enterprises will be supervised to protect workers’ rights to pay, rest, and occupational safety. AI use in human resources management will be regulated, and illegal acts such as employment discrimination, fake recruitment, and privacy violations caused by algorithm abuse will be addressed according to law.
Social security will be made more flexible and inclusive. Flexible workers and new employment form workers are encouraged to participate in urban employee basic pension insurance, and pilot programs for occupational injury protection for new employment form workers will be expanded.
6. Income distribution and monitoring
Enterprises are guided to establish salary distribution systems suited to AI practitioners, improve incentive mechanisms for high-level talent oriented toward knowledge value, and implement minimum wage classification guidance for skilled workers. Innovative work forms such as intelligent agents will be nurtured, and enterprises are encouraged to invest in public-interest AI technology, services, and open-source communities.
Cross-departmental sharing of AI industry and employment data will be strengthened, and regional and industry-specific intelligent monitoring and analysis models will be built. Early warning and forecasting of AI-related employment risks will be enhanced. Special surveys on AI’s employment impact will be conducted, and AI employment research centers will be set up in universities and research institutions.
Practical takeaways for foreign founders
- Hiring and training: New AI-related occupations and skill standards may create talent shortages and training opportunities. Consider participating in school-enterprise programs and using public training resources.
- Funding and support: SMEs and startups may access digital transformation services, open-source ecosystems, and government-backed investment funds. Check eligibility for special loan programs.
- Risk assessment: If your AI application falls under market access areas, an employment risk assessment may be required during project review. Plan for potential worker transition support.
- Compliance: AI use in HR management will be scrutinized. Avoid algorithmic discrimination, fake recruitment, and privacy violations. Ensure worker rights to pay, rest, and safety are protected.
- Social security: If you engage flexible workers, note that social security policies are becoming more inclusive, with expanded pension and occupational injury pilots.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.