The Chinese government aims to integrate artificial intelligence into all economic and social sectors by 2035 to boost industrial competitiveness. However, this rapid adoption faces a significant policy dilemma: balancing technological growth with the need to maintain stable employment, as AI risks replacing human labor on a large scale.
Many Chinese workers report job displacement due to AI, with some companies training models on employee data to create digital replicas. Cases include voice actors suing platforms for unauthorized voice cloning and creative professionals forced by clients to use generative tools like Kling, which they claim diminishes the value of their expertise.
Corporate adoption of AI has seen mixed results. A June report by the China Center for Information Industry Development estimated that nearly 70% of small businesses remain in the experimental phase due to high integration costs. Some firms purchased pre-installed AI hardware, such as DeepSeek appliances, but many found the actual value lower than expected.
Public enthusiasm for tools like OpenClaw has been volatile. While some local governments and tech firms promoted the open-source agent, users reported security concerns, including unauthorized data access and erratic behavior. Consequently, some individuals have abandoned these tools shortly after installation.
The Chinese government is beginning to address the social risks of AI-driven layoffs. A Hangzhou court recently ruled in favor of an employee replaced by AI, deeming the dismissal illegal. Furthermore, Beijing officials and state media have urged companies to balance cost-cutting with social responsibility to maintain employee trust and long-term competitiveness.
Experts suggest that China's leadership is navigating a tension between economic productivity and political stability. While the state views AI as a strategic asset to gain a global edge, the potential for widespread unemployment may force a slowdown in the pace of mandatory AI implementation to prevent social unrest.
