Published by ChinaMNC · Lingyun
AI and Employment: What China’s New Policy Means for Foreign Founders
China’s State Council has issued new guidelines to make AI adoption employment-friendly. For foreign founders, this signals support for AI startups, easier hiring in new roles, and a more predictable regulatory environment. Here’s what you need to know.
AI and Employment: What China’s New Policy Means for Foreign Founders
China’s State Council has released a new set of guidelines aimed at adapting to the development of artificial intelligence (AI) while fostering an employment-friendly development model. For foreign founders building or operating companies in China, this policy provides a clearer picture of how the government intends to balance AI-driven efficiency with job creation and worker protection. Below is a breakdown of the key measures and what they could mean for your business.
1. Expanding AI-Related Employment
The policy encourages the growth of AI industries across regions. Eastern regions are encouraged to develop core AI industries, while central and western regions are guided to take on supporting activities such as data labeling and intelligent terminal manufacturing. This could create new opportunities for foreign founders to set up operations in different parts of China, depending on their business focus.
Additionally, the government plans to support “AI-native” enterprises and specialized SMEs. Eligible companies may be included in special loan programs aimed at stabilizing and expanding employment. For foreign founders, this means potential access to financial support if your company qualifies.
2. Support for SMEs and Startups
The guidelines include an entrepreneurship support program for AI-focused SMEs, promoting open-source ecosystems to encourage innovation. Public services for digital transformation will be strengthened, with encouragement to develop lightweight, affordable digital products and solutions. SMEs and individual businesses are to be guaranteed equal access to data, algorithms, and other intelligent production factors. This lowers the barrier for smaller players, including foreign-invested startups, to adopt AI and scale up.
Government investment funds, such as the National Venture Capital Guidance Fund and the National AI Industry Investment Fund, will support AI companies through market-based methods. High-level open-source communities and projects will be developed to foster entrepreneurship and job creation.
3. New Job Roles and Skills Development
The policy calls for the rapid development of new occupations and standards in AI, including roles like digital managers, AI engineering technicians, and AI trainers. Localities are encouraged to add related professional titles and conduct skill-level certifications. For foreign founders, this means a growing talent pool with recognized qualifications in AI-related fields.
Collaborative talent cultivation is emphasized: universities and vocational schools are to dynamically adjust curricula, add AI micro-programs, and strengthen interdisciplinary training. Enterprises, especially leading tech companies, are encouraged to participate in curriculum development and teacher training. This can help foreign founders access graduates with practical AI skills.
4. Training and Reskilling Programs
A special AI training plan will be implemented, targeting recent graduates, migrant workers, and unemployed individuals. Local governments are encouraged to offer AI-related skills training through public training bases and enterprise facilities. General AI education will be promoted via national online platforms, with more public courses available. This could ease hiring for foreign founders by expanding the pool of AI-literate workers.
5. Managing Job Displacement
The policy acknowledges that AI may displace some workers and calls for a cautious approach in labor-intensive industries. Companies are encouraged to establish “unemployment buffer periods,” giving affected workers advance notice and support for transition. A job risk assessment mechanism will be set up for AI application projects, especially those that could cause significant employment shocks. For foreign founders, this suggests that when implementing AI, you should consider workforce impact and may need to conduct risk assessments for certain projects.
6. Enhancing Employment Services with AI
The government plans to use AI to improve job matching and policy delivery. National employment information platforms will be upgraded, and AI will be applied in labor dispute mediation and human resource services. New products like smart recruitment models and virtual reality training are encouraged. Foreign founders in HR tech or recruitment could find new opportunities here.
7. Worker Protections and Social Security
The policy emphasizes protecting workers’ rights in the AI era. It calls for research on labor rights in human-machine collaboration, regulation of AI in HR management to prevent discrimination, and improved social security for flexible workers. Companies are urged to ensure lawful pay, rest, and safety. For foreign founders, compliance with these evolving labor rules will be important.
8. Income Distribution and Risk Monitoring
Enterprises are guided to establish compensation systems suited to AI professionals, with incentives for high-level talent. The policy also calls for monitoring AI’s impact on employment through data sharing and research, and integrating AI-related employment risks into existing unemployment risk prevention mechanisms. This indicates a more structured approach to managing AI’s social impact, which could affect how you plan workforce changes.
What This Means for Foreign Founders
Overall, the policy signals China’s commitment to embracing AI while maintaining social stability. For foreign founders, this translates into:
- Supportive measures for AI startups and SMEs, including access to funding and open-source resources.
- A growing talent pool with AI skills and recognized certifications.
- Clearer expectations around workforce transitions and worker protections when adopting AI.
- Opportunities in AI-enabled services, such as HR tech and training.
As with any regulation, the details will be implemented at local levels, so staying informed and seeking local advice is essential.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.
For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.