Published by ChinaMNC · Lianhu
China’s AI and Employment Plan: What Foreign Founders Need to Know
A State Council office opinion outlines how China will foster AI-related jobs, support SMEs, and manage workforce transitions. This guide highlights the practical implications for foreign founders registering or operating a company in China.
Overview
China’s State Council General Office has issued an opinion on adapting to AI development and building an employment-friendly development model. The document, agreed by the State Council, sets out how government bodies should encourage AI’s positive employment effects while mitigating displacement risks. For foreign founders, it signals policy priorities that can affect hiring, training, social insurance, and business operations in China.
Key Policy Directions
1. Expanding AI-related jobs
The plan promotes the “AI+” initiative, encouraging eastern regions to develop core AI industries and central and western regions to take on upstream and downstream activities such as data labeling and smart terminal manufacturing. It also supports smart-native enterprises and specialized “little giant” firms, with eligible companies able to access special loans for stabilizing and expanding employment.
2. Supporting SMEs and startups
An AI SME entrepreneurship support program will use open-source ecosystems to foster innovation. Public digital transformation services will be strengthened, and SMEs and individual businesses are to be guaranteed equal access to data, algorithms, and other intelligent production factors. Low-cost, lightweight digital upgrading paths are encouraged to lower AI adoption barriers.
3. New business models and venture support
Government investment funds, including the national venture capital guidance fund and the national AI industry investment fund, will support AI companies on market principles. High-level open-source communities and projects will be built. Entrepreneurship models combining tech achievements, industry development, vocational skills, and livelihood needs will be promoted, with incubation services for AI-related ventures.
4. New occupations and skills
The government will accelerate the development of new occupations and standards, boosting demand for roles such as digital managers, AI engineering technicians, and AI trainers. Localities may add AI-related professional titles and conduct skills certification.
5. Upgrading traditional sectors
AI will be used to transform traditional industries, including industrial intelligence and agricultural digitalization, promoting human-machine collaboration. New service models will expand employment in producer and consumer services.
Managing Workforce Transition
The opinion calls for a cautious approach to AI adoption in labor-intensive sectors and encourages companies to establish unemployment buffer periods, giving affected workers advance notice and transition support. A job impact assessment mechanism will be set up, with assessments required for market-access projects that could cause significant displacement.
Talent Development and Training
Universities and vocational schools are encouraged to adjust curricula, launch AI micro-programs, and expand interdisciplinary training. Enterprises, especially tech leaders, can participate in course development and teaching. A special AI training plan will target young people, migrant workers, and unemployed persons, with public service platforms offering free courses.
Employment Services and Worker Protections
AI will be used to improve job matching and policy delivery, including intelligent policy推送 and upgraded public employment platforms. The document also addresses worker rights in human-machine collaboration, regulating algorithmic management to prevent discrimination and privacy violations. Social insurance flexibility will be enhanced for flexible and new-form employment, and income distribution mechanisms will be improved to reward knowledge and skills.
Monitoring and Risk Response
Cross-departmental data sharing will support AI-related employment monitoring and early warning. Research on AI’s employment impact will be strengthened through surveys and research centers. Employment risks from AI will be incorporated into existing mechanisms for preventing large-scale unemployment.
Implications for Foreign Founders
- Hiring and training: Foreign-invested companies may benefit from government-supported AI training programs and new occupational standards when recruiting local talent.
- SME support: Eligible SMEs, including foreign-invested ones, can potentially access digital transformation services and financing support, though specific eligibility depends on local implementation.
- Compliance: Companies using AI in HR should note the emphasis on regulating algorithmic management and protecting worker rights.
- Risk management: AI projects with significant employment impact may face job impact assessments, so early planning for workforce transition is advisable.
- Social insurance: Flexible employment social insurance rules are set to become more inclusive, which may affect how you structure contracts for flexible workers.
Foreign founders should monitor local implementing rules, as many measures are to be carried out by provincial and municipal authorities.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.