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China court: AI adoption not justification for firing

5/1/2026

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Story summary
  • China’s People’s Court ruled on April 28 that firing an employee to cut salary from 25,000 yuan to 15,000 yuan to replace with AI was illegal.
  • The court said AI adoption is a choice, not a change, and not justify layoffs.
  • A Beijing panel ruled automation alone did not meet the threshold for dismissing a data-entry employee.
  • China’s AI sector topped 1.2 trillion yuan in 2025 and includes over 6,200 firms.
  • Nvidia CEO Jensen Huang said AI created 500,000 jobs, and firms grow faster and hire more.
  • He criticized CEOs for a “God complex” when they claim AI will cause job losses.
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