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China's New AI Employment Policy: What Foreign Founders Need to Know

China's State Council has issued new guidelines to make AI development employment-friendly. Foreign founders operating in China should understand how these policies affect hiring, training, and compliance.

China's New AI Employment Policy: What Foreign Founders Need to Know

The General Office of China's State Council has released a new set of opinions aimed at adapting to artificial intelligence (AI) development while fostering an employment-friendly development model. For foreign founders registering or operating a company in China, these policies signal both opportunities and compliance considerations. Below is a practical summary of the key measures based on the official document.

1. Expanding AI-Related Employment Opportunities

The policy encourages the growth of AI-related jobs across regions. Eastern regions are encouraged to develop core AI industries, while central and western regions are guided to take on upstream and downstream industries such as data labeling and intelligent terminal manufacturing. The document also calls for cultivating AI-native enterprises and specialized SMEs, and including eligible enterprises in special loan support programs for stabilizing and expanding employment.

2. Support for SMEs and Startups

An AI entrepreneurship support plan for SMEs is to be implemented, leveraging open-source ecosystems to boost innovation. The policy promotes digital transformation public services and encourages the development of lightweight digital products and solutions. SMEs and individual businesses are to be ensured equal access to data, algorithms, and other intelligent production factors. This lowers the barrier for AI adoption and can enhance employment capacity.

3. New Employment and Entrepreneurship Models

Government investment funds, such as the National Venture Capital Guidance Fund and the National AI Industry Investment Fund, will support AI enterprise innovation in a market-oriented manner. The policy also calls for building high-level AI open-source communities and implementing quality open-source projects. It promotes entrepreneurship models combining technology achievements, industry development, vocational skills, and livelihood needs with entrepreneurship, and provides incubation services for AI-related startups.

4. Developing New AI Occupations

New occupations and occupational standards are to be developed around AI scenarios and large-scale applications. Demand for roles such as digital managers, AI engineering technicians, and AI trainers will be expanded. Localities are encouraged to add relevant professional titles and conduct skill-level certifications for AI-related jobs.

5. Tapping Employment Potential in Traditional Sectors

AI is to be used to transform traditional industries, promoting human-machine collaboration in industrial and agricultural digitalization. The policy also aims to develop new AI-driven service models, advance producer services toward specialization and higher value chains, and expand service consumption scenarios like experiential and personalized consumption, thereby increasing employment in the service sector.

6. Mitigating Job Displacement

The policy emphasizes using AI to improve work environments and safety, prioritizing applications in labor-shortage and high-risk positions. The application of AI in labor-intensive industries should be steady and cautious, minimizing impact on workers. Enterprises are encouraged to explore unemployment buffer periods, giving affected workers advance notice and providing transition support.

7. Employment Risk Assessment

A mechanism for assessing the employment impact of AI applications is to be established. For market-access AI projects that may cause significant job displacement, employment risk assessments will be conducted during review, with support for job transitions. Other AI projects will also undergo assessments as needed.

8. Cultivating AI Talent

Universities and vocational schools are encouraged to dynamically adjust curricula, rapidly establish AI-related majors, and develop interdisciplinary programs. Micro-specializations in AI and compound talent training projects will be expanded. School-enterprise joint training is emphasized, with support for leading tech firms to participate in curriculum development and teacher training. AI education will be promoted at all levels, including student internships and enterprise engineers teaching in schools.

9. Specialized AI Training Programs

A special training plan for AI will be implemented, including the "Skills Light Up the Future" initiative. Localities are encouraged to offer project-based and order-based digital skills training aligned with AI market needs, targeting college graduates, migrant workers, and unemployed individuals. Public training bases and enterprise training facilities will be utilized for AI skills training. Public AI courses will be offered via national education platforms, and AI-related skill competitions will be encouraged.

10. AI-Enabled Employment Services

The policy calls for using AI to improve policy implementation, such as intelligent identification of eligible individuals and smart push of employment policies. AI will also be applied in policy evaluation, fund management, and consultation. Public employment service platforms will be upgraded with AI, and AI applications in labor dispute mediation and human resources services will be deepened, including job-matching models, smart interviews, and virtual reality training.

11. Support for Job Transitions

Workers affected by AI-induced job displacement will receive targeted employment assistance, including career guidance, skills training, job recommendations, and entrepreneurial support. Unemployment insurance benefits will be paid promptly and in full to eligible individuals.

12. Labor Rights Protection in Human-Machine Collaboration

Research on labor rights protection in the context of human-machine collaboration will be strengthened. Enterprises are urged to protect workers' rights to remuneration, rest, and occupational safety. The use of AI in human resource management will be regulated to prevent discrimination, fake recruitment, and privacy violations caused by algorithm abuse.

13. Social Security for Flexible Employment

Social security systems will be made more flexible and inclusive to accommodate AI development. Flexible workers and new employment form workers are encouraged to participate in urban employee basic pension insurance, and pilot programs for occupational injury protection will be expanded.

14. Income Distribution Mechanisms

Enterprises are guided to establish salary distribution systems suited to AI practitioners, with incentives for high-level talent based on knowledge value. Minimum wage classification guidelines for skilled workers will be implemented. The policy encourages investment in public-interest AI technologies and open-source communities to help workers expand their capabilities and share in the benefits of technological progress.

15. Monitoring and Research

Cross-departmental data sharing on AI-related industries and employment will be enhanced to build regional and industry-specific employment monitoring models. Research on the employment impact of AI will be conducted, including special surveys and the establishment of AI employment research centers. National social science funds will support forward-looking studies on AI's impact on employment and income distribution.

16. Risk Response Mechanisms

AI-related employment risks will be incorporated into the existing mechanism for preventing and resolving large-scale unemployment risks. Contingency plans will be formulated, and joint responses to labor relations risks will be strengthened.

Conclusion

Foreign founders should note that these policies emphasize both promoting AI innovation and safeguarding employment. Companies may benefit from support for AI adoption, training programs, and risk assessment frameworks. Compliance with labor rights and social security regulations will be crucial. Staying informed about local implementation will help navigate the evolving landscape.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

Call to Action: Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.

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WhatsApp / WeChat: +86 153 1898 8535

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