China's Surprising Strategy to Combat Unemployment Through Artificial Intelligence
Artificial intelligence technology has long been blamed as a primary driver of mass redundancies and unemployment, with many people struggling to find work as AI increasingly replaces human roles. Several professions are predicted to disappear within the coming years due to AI development. However, China has surprisingly adopted a strategy to leverage AI in combating the escalating unemployment crisis.
The Beijing government has reportedly positioned AI technology as a primary “weapon” for creating new jobs whilst supporting the economy. This initiative was announced during the opening of China’s annual parliamentary session last week. The government aims to extensively deploy AI within the next five years to counterbalance economic slowdown and an ageing workforce population.
China’s Human Resources Minister Wang Xiaoping affirmed that the government will utilise the technology to expand employment opportunities, particularly for millions of new graduates. “The government actively leverages AI to create jobs and expand employment opportunities for 12.7 million university graduates this year,” he stated, according to Reuters on 11 March 2026.
Senior analyst at Plenum Shujing He noted that the government currently prioritises promoting AI development over anticipating job losses. “For now, promoting AI adoption and capability appears to be a higher policy priority than anticipating potential job reduction,” she said.
China’s Decision Triggers Controversy
However, not all parties agree with this optimism. Asia-Pacific chief economist at Natixis Alicia Garcia-Herrero warned that automation risks suppressing wages and worsening youth unemployment. “Automation has two major effects: wage suppression and continued increase in youth unemployment,” she stated.
During state television CCTV broadcasts of the parliamentary session, two executives from Chinese state-owned enterprises stated they anticipated AI would trigger major restructuring within their organisations. However, Changan Automobile Chairman Zhu Huarong remained optimistic that increased AI adoption would transform China’s automotive industry into a “sunrise industry” from what was previously considered to be declining.
Meanwhile, Chinese companies and universities are rapidly adapting. Several campuses have restructured curricula to equip students with skills difficult for AI to replace, such as creativity, critical thinking, and cross-disciplinary capabilities. “We must train them to question things. If your thinking is not sharp, you won’t defeat a robot,” said ShanghaiTech University Vice Rector Yin Jie.
The major push towards AI is also driven by demographic challenges. Approximately 300 million Chinese citizens are expected to retire within the next decade, potentially straining the state pension budget.
Nevertheless, concerns persist. Labour economist Cai Fang cautioned that in many cases, job destruction occurs faster than job creation resulting from technological advancement. “Job destruction often happens first and at a greater scale compared to job creation,” he wrote.