Published by ChinaMNC · Dexing

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 should understand how these policies affect hiring, training, and compliance when operating in China.

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. For foreign founders registering or operating a company in China, these policies signal both opportunities and compliance considerations. The guidelines aim to leverage AI to create jobs, upgrade traditional roles, improve job quality, and stimulate entrepreneurship while mitigating displacement effects. The overarching goal is inclusive development where technological progress, industrial upgrading, employment promotion, and livelihood improvement advance together.

Expanding AI-Related Employment

The guidelines encourage eastern regions to develop core AI industries and central-western regions to take on downstream activities like data labeling and smart device manufacturing. Foreign founders in AI should note the focus on nurturing AI-native enterprises and specialized SMEs, with eligible firms potentially accessing special loans for job stabilization and expansion. This suggests growing support for AI startups that create jobs.

Support for SMEs and Startups

An AI entrepreneurship support plan for SMEs aims to foster innovation via open-source ecosystems. The government will enhance digital transformation public services, encouraging low-cost, lightweight AI upgrades for small businesses. Foreign founders running SMEs should be aware of these support measures, which could lower barriers to AI adoption and improve job absorption capacity.

New Business Models and Jobs

Government investment funds, including the National Venture Capital Guidance Fund and the National AI Industry Investment Fund, will support AI enterprise innovation on a market basis. The guidelines promote open-source communities and entrepreneurship models combining tech achievements, industry development, skills, and livelihood needs. New occupations such as digital managers, AI engineers, and AI trainers will see expanded demand, with new occupational standards and certification systems. Foreign founders may find opportunities in these emerging roles.

Transforming Traditional Sectors

AI is expected to upgrade traditional industries, promoting human-machine collaboration in industrial and agricultural digitalization. The service sector will see new AI-driven models, expanding employment capacity in producer and consumer services. Foreign founders in traditional sectors should consider how AI can enhance their operations and create new job opportunities.

Mitigating Displacement and Risk Assessment

The guidelines call for a cautious approach to AI application in labor-intensive industries, with a focus on reducing impact on workers. Companies are encouraged to establish unemployment buffer periods, notify affected workers in advance, and provide transition support. A job risk assessment mechanism will be established, with assessments required for AI projects that may cause significant employment shocks in market access. Foreign founders should incorporate these risk assessments into their AI deployment plans.

Talent Development and Training

Universities and vocational schools will dynamically adjust curricula to prioritize AI-related majors and interdisciplinary programs. School-enterprise collaboration will be strengthened, with tech leaders participating in curriculum development and teaching. A special AI training plan will target youth, migrant workers, and unemployed individuals, with public training bases and online platforms offering courses. Foreign founders can tap into these talent pipelines and training resources.

Smart Employment Services and Worker Protections

The guidelines promote AI in employment policy implementation, including smart identification and policy push, as well as intelligent public employment services. Support for workers affected by AI displacement includes job guidance, training, and unemployment insurance. Labor rights protection will be strengthened for human-machine collaboration, with regulations on algorithmic management to prevent discrimination and privacy violations. Social security will be made more flexible for flexible employment and new job forms. Foreign founders must ensure compliance with these evolving labor protections.

Income Distribution and Monitoring

Companies are encouraged to adopt compensation systems suited to AI professionals, with incentives for high-level talent and skill-based minimum wages. Innovative work forms like intelligent agents will be nurtured. The guidelines also call for monitoring and early warning of AI-related employment risks, cross-departmental data sharing, and research on AI's employment impact. Foreign founders should stay informed about these monitoring mechanisms.

Conclusion

China's new AI employment guidelines present a comprehensive framework that foreign founders should integrate into their China strategy. From leveraging support for AI startups to complying with labor protections, understanding these policies is crucial for successful operations. For assistance with company registration and navigating these regulations, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.

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