China’s Workers Face AI Job Displacement Fears

AI Layoffs Hit China’s Tech Sector and Code Hubs

Computer programmer Fei Zhaojun lost his job in Beijing along with about 160 colleagues just two weeks after his boss asked him if artificial intelligence could replace human coders. According to Fei, mid-level coding jobs have become largely replaceable, pushing him onto a career break where he now produces short vlog-style videos about ordinary lives while deciding his next move.

This workforce reduction reflects a broader trend across China’s technology sector. According to Cornell University economics and trade policy professor Eswar Prasad, Chinese tech industries may drive high productivity and innovation, but they struggle to generate enough new jobs to absorb displaced workers, risking severe employment friction.

Economic Strains and Government Push Under ‘AI Plus’

Under the national “AI Plus” initiative and its five-year plan through 2030, Beijing is pushing to integrate artificial intelligence across numerous economic sectors to secure an edge in its technology rivalry with the United States. Oxford China Policy Lab research associate Zilan Qian notes that this state-led diffusion causes AI to penetrate different domestic domains faster in China than in many other nations.

However, this rapid transition collides with a slowing national economy. Consumer spending remains depressed as citizens grow reluctant to open their wallets due to mounting job security fears, compounding financial pressures from an ongoing housing market downturn. Overall urban unemployment hovers around 5%, but jobless rates for individuals aged 16 to 24—excluding students—remain roughly triple that figure.

Adapting to Automation in Translation and Content Creation

Workers outside traditional software development are also feeling the squeeze. Du Qinchun, a part-time translator based in Chengdu, has taken on work training AI translation models to secure extra income, though he reports that industry pay has been cut by more than half compared to prior years. Widespread AI translation tools have similarly caused popular college foreign language programs to lose favor among students.

Multimedia creation faces similar disruption. Plenum senior analyst Shujing He points out that generative AI is increasingly dominating China’s short drama industry, contributing to a roughly 75% drop in the volume of live-action short and vertical video series produced in the first quarter of this year compared to the prior year.

Demographic Shifts and Long-Term Workforce Adjustments

While automation threatens current jobs, some researchers suggest that robotics and AI may eventually ease pressures from China’s rapidly aging and shrinking population. San Francisco Bay University professor Xuenan Cao notes that by 2050, China is projected to have fewer than two working-age adults to support every retiree, meaning automation could eventually offset a contracting workforce rather than strictly endanger it.

For now, though, immediate displacement risks remain unevenly distributed. A report from the International Labor Organization highlights that women face higher risks of displacement than men due to their concentration in automatable assembly roles and underrepresentation in science and technology fields.

Frequently Asked Questions

How is the Chinese government influencing AI adoption?

Through its “AI Plus” initiative and its five-year plan through 2030, the Chinese government actively encourages businesses and citizens to deploy AI applications and robotics across all economic sectors.

Which job sectors face the highest risk of AI displacement in China?

Software development, translation, scriptwriting, and electronics assembly face elevated risks, with female workers particularly vulnerable due to automation trends in assembly and manufacturing.

Are all workers in China opposed to AI integration?

According to research from Plenum, anti-AI sentiment appears much lower in China than in many Western countries, with many displaced workers eager to experiment with AI-enabled independent businesses.