Artificial intelligence deployment in China’s rapidly evolving labor market is intensifying social tensions, according to local reports and tech analysts. While state leaders champion AI as a driver for shared prosperity, the technology’s aggressive rollout—epitomized by Baidu’s Apollo Go robotaxis and advanced digital clones—threatens millions of jobs in precarious gig and white-collar sectors.
The Robotaxi Disruption on Wuhan Streets
On the tree-lined streets of Wuhan, a fleet of driverless taxis known as Apollo Go and powered by artificial intelligence sparked widespread disruption when a system malfunction caused several cabs to stop abruptly in March, leaving riders stranded for hours, according to reports from Bloomberg and Getty Images. The ensuing months-long investigation and temporary removal of the robotaxis provided a brief financial reprieve for 45-year-old taxi driver Yao Xinnong. Yao’s wages had dropped by about 40% since Apollo Go launched in 2022, but customers returned to human-driven cabs during the outage.
“I don’t really like them, to be honest,” Yao says of the driverless cabs operated by tech giant Baidu, adding that “their impact has been huge.” The expansion of autonomous ride-hailing is hitting a workforce already strained by an economic downturn. As traditional industries like real estate and education flounder, millions of workers have dropped out of formal employment into the gig economy. According to thinktank projections cited in recent reports, the number of people in flexible employment is expected to reach 320 million this year, making up roughly 44% of China’s total workforce.
Gig Workers and White-Collar Professionals Face Displacement
Resistance to automation has occasionally boiled over into public dissent. In Wuhan, taxi drivers protested against the rollout of Apollo Go in 2024, though news of the demonstrations was quickly censored. That same year, a local taxi company took the rare step of publicly criticizing government automation policies. A published open letter stated that autonomous ride-hailing vehicles “allowed technology to monopolise resources and take away the livelihoods of people at the bottom of society.”
Did you know? According to labor market estimates, flexible employment accounts for approximately 44% of China’s workforce, driven largely by workers transitioning away from traditional industries into ride-hailing and gig work.
The displacement is no longer confined to blue-collar and gig workers. White-collar professionals are increasingly vulnerable as well. Tian Zemin, a Beijing-based cinematographer with nearly two decades of experience, lost his job after software replaced his role. “I spent six gruelling years working my way up to become a cinematographer, only to be replaced by a piece of software,” Tian wrote in a social media post. Tian notes that AI video generation has leaped from producing crude avatars last year to creating convincing digital clones capable of carrying a feature-length film, leaving freelancers struggling to compete as their freelance rates plunge to 40% of 2019 levels.
Shifting Regulatory Tones and the Search for Solutions
Beijing has begun adjusting its policy stance to address these mounting labor pressures. Addressing Shanghai’s World AI Conference in July, China’s leader, Xi Jinping, stated that AI should serve as “an important driver for shared prosperity and common security.” Government bodies have since pledged to comprehensively address the impact of new technologies on employment.
Selina Xu, a China technology analyst, notes a “major vibe shift” from Beijing following the success of local AI model DeepSeek. While last year’s focus was heavily pro-development, newer guidelines place significantly more emphasis on people-first approaches and AI’s effect on job creation. Meanwhile, local officials like Cheng Wanhui, a government official in Beijing’s Zhongguancun hi-tech zone, emphasize that authorities are monitoring ethical concerns closely, urging workers to view AI simply as a tool to learn and apply in future work.
Frequently Asked Questions
How are robotaxis impacting traditional taxi drivers in China?
The rollout of AI-powered robotaxis like Baidu’s Apollo Go has intensified competition in China’s gig economy, significantly reducing earnings for human ride-hail and taxi drivers who are already navigating a precarious labor market.
Is AI replacement limited to blue-collar jobs?
No. Recent industry adoption has displaced white-collar professionals as well, including cinematographers and creative workers whose tasks are increasingly handled by advanced generative software and digital clones.
What is the government’s current stance on AI employment impacts?
Following initial pushes for rapid technological deployment, policymakers and local officials are shifting toward a people-first approach, pledging to monitor social consequences and address how automation affects national employment levels.
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