Published by ChinaMNC · Laohekou

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

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, and new compliance considerations. Here's a practical overview of the key measures and what they mean for your China operations.

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

China's State Council has issued new guidelines to adapt to AI development and build an employment-friendly development model. For foreign founders registering or operating a company in China, this policy signals both opportunities and compliance considerations. The guidelines aim to harness AI's potential to create jobs, upgrade traditional roles, and improve job quality, while mitigating displacement effects.

Key Measures for Businesses

1. Expanding AI Job Opportunities

The policy encourages the "AI+" initiative, with eastern regions focusing on core AI industries and central/western regions承接 data labeling, smart terminal manufacturing, and related upstream/downstream industries. Qualified enterprises can access special loans for job stabilization and expansion. Foreign founders in AI or related fields may find new opportunities in these supported areas.

2. Support for SMEs and Startups

An AI SME entrepreneurship support plan will be implemented, promoting open-source ecosystems. The policy encourages development of "small, fast, light, precise" digital products and solutions, and ensures SMEs and individual businesses can equally use data, algorithms, and other intelligent production factors. This lowers barriers for AI adoption and can help foreign-invested SMEs upgrade with low-cost, lightweight solutions.

3. New Employment and Entrepreneurship Models

Government investment funds, including the National Venture Capital Guidance Fund and the National AI Industry Investment Fund, will support AI enterprise innovation. High-level open-source communities and projects will be developed. The policy promotes models like "scientific achievements + entrepreneurship" and "industry development + entrepreneurship," with support policies and incubation services for AI-related startups. Foreign founders in AI may benefit from these funding and incubation opportunities.

4. New AI Occupations and Standards

New occupations and standards will be developed, increasing demand for roles like digital managers, AI engineers, and AI trainers. Localities are encouraged to add related professional titles and conduct skill-level certifications. This can help foreign companies hire skilled AI talent more easily.

5. AI in Traditional Sectors

AI will be used to upgrade traditional industries, promoting human-machine collaboration in industrial and agricultural digitalization. New service models will expand employment in producer and consumer services. Foreign founders in traditional sectors can explore AI adoption to improve efficiency and create new service offerings.

6. Mitigating Job Displacement

AI application in labor-intensive industries should be advanced prudently, with a focus on labor-shortage and high-risk positions. Companies are encouraged to establish unemployment buffer periods, notify affected workers in advance, and provide transition support. Foreign employers should be aware of these expectations when deploying AI.

7. Employment Risk Assessment

An employment risk assessment mechanism will be established. For AI application projects in market access that may cause significant employment impact, employment risk assessments will be conducted during review. Other projects will assess as needed. Foreign founders planning AI deployments should consider potential employment impacts and prepare accordingly.

8. Talent Cultivation

Universities and vocational schools will dynamically adjust majors, urgently布局 AI-related disciplines, and increase micro-specializations. School-enterprise joint training is encouraged, with tech leaders participating in curriculum development and teaching. This aims to produce more composite AI talent, benefiting foreign companies seeking skilled workers.

9. Training Programs

A special AI training plan will be implemented, including project-based and order-based digital skills training. Unemployed individuals, graduates, and migrant workers are encouraged to join AI entrepreneurship training. Public training bases and online platforms will offer more free courses. Foreign companies can leverage these programs to upskill their local workforce.

10. Smart Employment Services

AI will be used to improve policy implementation, including intelligent policy matching and push notifications. Employment service platforms will be upgraded for better data integration and analysis. AI will also be applied in labor dispute mediation and HR services, with encouragement for new products like smart recruitment and virtual reality training. Foreign founders can expect more efficient government services.

11. Support for Transitioning Workers

Workers affected by AI-induced job displacement will receive employment assistance, including career guidance, skills training, job recommendations, and entrepreneurship support. Unemployment insurance benefits will be paid promptly. Foreign employers should note these provisions when managing workforce changes.

12. Labor Rights Protection

Research on labor rights in human-machine collaboration will be strengthened. Enterprises must protect workers' rights to remuneration, rest, and safety. AI applications in HR management will be regulated to prevent discrimination, fake recruitment, and privacy violations. Foreign companies should ensure compliance with these evolving rules.

13. Social Security for Flexible Employment

Social security systems will be made more flexible and inclusive, encouraging flexible workers and new employment forms to participate in urban employee pension insurance. Pilot programs for occupational injury protection will expand. This affects how foreign companies engage gig workers and contractors.

14. Income Distribution

Enterprises are guided to establish salary systems suited to AI professionals, with incentives for high-level talent based on knowledge value. Skill-based minimum wage guidelines will be implemented. Companies are encouraged to invest in public-interest AI technology and open-source communities. Foreign founders should align compensation with these trends.

15. Risk Monitoring and Research

Cross-departmental data sharing on AI-related industries and employment will be enhanced, with intelligent monitoring models. Research on AI's employment impact will be conducted through surveys and research centers. These measures aim to provide early warning and informed policymaking.

What This Means for Foreign Founders

For foreign entrepreneurs, this policy presents opportunities in AI and related sectors, including access to funding, talent, and support services. It also introduces compliance expectations around employment impact, worker transition, and labor rights. When registering or operating a company in China, consider how your AI adoption plans align with these guidelines. Stay informed about local implementation and consult professionals for specific 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.

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