Full Breakdown
AI-Driven Layoffs and Worker Concerns in China
8/25/2026, 12:04:50 PM
Background & Context
China’s “AI Plus” initiative, part of its five-year plan through 2030, directs the state to embed artificial-intelligence applications across the economy. The policy aims to give China a technological edge in its rivalry with the United States. Rapid AI diffusion has reached sectors from software development to logistics, prompting both optimism about productivity gains and anxiety about job security.
Data & Statistics
- The share of Chinese industrial enterprises reporting use of AI models and “agents” rose to 47.5 % last year, up from 9.6 % in 2024 (IDC).
- Urban unemployment hovers around 5 %, while the rate for 16- to 24-year-olds is roughly three times higher.
- A report from the International Labour Organization found that women face higher risks of AI-related job loss than men, due to concentration in occupations such as electronics assembly.
- In the short-form video sector, the number of live-action short and vertical series fell by about 75 % in the first quarter of this year compared with a year earlier.
Official Statements & Responses
- Shujing He, senior analyst at Plenum, noted that anti-AI sentiment is relatively low in China and many who fear displacement are experimenting with AI-enabled ventures.
- Yanze Du, senior research manager at IDC, highlighted China’s “vibrant open-source model ecosystem” as a driver of industrial AI innovation.
- Zilan Qian, research associate at Oxford China Policy Lab, emphasized that the government’s aggressive diffusion strategy may cause AI to enter more domains faster than elsewhere.
- Eswar Prasad, professor of economics at Cornell University, warned that AI could have a “severe disruptive effect on employment” and threaten social stability.
Impact on Workers
The story of Fei Zhaojun, a 40-year-old programmer in Beijing, illustrates the personal dimension of the trend. After his boss asked whether AI could replace human coders, Fei and roughly 160 colleagues were laid off two weeks later. He now produces short vlog-style videos during a career break, hoping to help others navigate the transition.
In Chengdu, Du Qinchun, a part-time translator, has temporarily increased his workload by assisting in training an AI translation model, though he reports that industry pay has fallen by more than half compared with previous years.
Scriptwriter Wang Zhicheng left a company that cut half of its 13 writers and now runs an independent studio creating illustrated children’s books. He describes AI-generated scripts as “repetitive and formulaic,” but treats the technology as a tool comparable to word-processing software.
High-school chemistry teacher Yang Zheng does not view AI as a direct threat to his profession, noting that teachers cannot be present constantly to supervise student work.
Why It Matters
The convergence of government policy, corporate adoption, and a labor force confronting rapid automation creates a multifaceted challenge for China’s economy. While AI may help offset a shrinking working-age population—projected to fall below two adults per retiree by 2050—it also raises immediate concerns about unemployment, gendered impacts, and social stability. The extent to which workers can pivot to AI-augmented entrepreneurship or new creative roles will shape the broader socioeconomic outcome.
