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China Is Worried About AI Job Losses
In Shanghai, jobless young professionals are paying $5 a day to sit beneath fluorescent lights at the aptly named Pretend to Work Co., one of many faux offices across the city that offer Wi-Fi, coffee, and the illusion of employment. Likely no more than a few blocks away, rural migrant workers sleep in shifts in a shared room, trading off turns at a single job.
Both groups are being buffeted by the same headwinds. China‘s slowing economy and structural shifts―including a real estate collapse and a crackdown on the tech sector―have left fewer jobs to go around. And a potentially more disruptive force for job-seekers is on the horizon: widespread artificial intelligence.
The Chinese Communist Party (CCP) appears intent on accelerating AI‘s dissemination across the economy. Its “AI+” plan, issued in August, set ambitious goals: AI devices, agents, and applications are expected to reach a penetration rate above 70 percent across society by 2027 and 90 percent by 2030. To observers in Washington, the AI+ plan is evidence that Beijing is determined to dominate AI development and deployment at all costs.
The reality is more complex. Beijing understands the strain that AI could place on China‘s already fragile labor market and is poised to manage its AI rollout to blunt job losses and avert any unrest. More fundamentally, the CCP does not see a zero-sum trade-off between achieving victory in the AI race and safeguarding domestic stability. To Beijing, the two are sides of the same coin.
Both groups are being buffeted by the same headwinds. China‘s slowing economy and structural shifts―including a real estate collapse and a crackdown on the tech sector―have left fewer jobs to go around. And a potentially more disruptive force for job-seekers is on the horizon: widespread artificial intelligence.
The Chinese Communist Party (CCP) appears intent on accelerating AI‘s dissemination across the economy. Its “AI+” plan, issued in August, set ambitious goals: AI devices, agents, and applications are expected to reach a penetration rate above 70 percent across society by 2027 and 90 percent by 2030. To observers in Washington, the AI+ plan is evidence that Beijing is determined to dominate AI development and deployment at all costs.
The reality is more complex. Beijing understands the strain that AI could place on China‘s already fragile labor market and is poised to manage its AI rollout to blunt job losses and avert any unrest. More fundamentally, the CCP does not see a zero-sum trade-off between achieving victory in the AI race and safeguarding domestic stability. To Beijing, the two are sides of the same coin.
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