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China's AI Employment Policy: A Guide for Foreign Founders

Foreign founders in China should note the State Council's new AI employment guidelines, which promote AI job creation while mitigating displacement. The policy encourages AI startups, SME digitalization, and new职业 training, affecting hiring and compliance.

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

The State Council has issued new guidelines to adapt to AI development and build an employment-friendly development model. For foreign founders operating or registering a company in China, this policy signals both opportunities and compliance considerations in hiring, training, and technology adoption.

Policy Objectives and Principles

The guidelines aim to harness AI to create jobs, upgrade traditional roles, improve job quality, and stimulate entrepreneurship, while mitigating job displacement. The policy emphasizes investment in both physical and human capital, development and security, and an employment-first approach. The goal is inclusive development where technological progress, industrial upgrading, and employment promotion align.

Key Measures for Businesses

Expanding AI-Related Employment

The policy encourages the "AI+" initiative, with eastern regions布局 core AI industries and central-western regions承接 data labeling, intelligent terminal manufacturing, and related upstream and downstream industries. It supports智能原生企业 and专精特新"小巨人" enterprises, including access to special loans for stabilizing and expanding employment. Foreign founders in AI-enabled sectors may find opportunities in these regional initiatives.

Supporting SMEs and Startups

An AI SME entrepreneurship support plan will leverage open-source ecosystems. Public digital transformation services will be enhanced, promoting "small, fast, light, precise" digital products and solutions. SMEs and individual businesses are guaranteed equal access to data, algorithms, and other intelligent production factors. Low-cost, lightweight intelligent upgrades are encouraged to lower AI adoption barriers. Foreign founders running SMEs should note these support mechanisms.

Fostering AI Entrepreneurship

Government investment funds, such as the National Venture Capital Guidance Fund and the National AI Industry Investment Fund, will support AI enterprise innovation on a market-oriented basis. High-level AI open-source communities and projects will be developed. Entrepreneurship models combining科技成果, industrial development, vocational skills, and民生 needs will be promoted, with startup support policies and incubation services for AI application projects.

Developing New AI Occupations

New occupations and standards will be developed, expanding demand for digital managers, AI engineering technicians, and AI trainers. Localities may add AI-related professional titles and conduct vocational skill level assessments. Foreign founders should monitor these developments for talent acquisition and qualification requirements.

Transforming Traditional Sectors

AI will be used to upgrade traditional industries, promoting human-machine collaboration in industrial and agricultural digitalization. New service models will be built, advancing producer services toward specialization and high value-added, and expanding lifestyle services. This may open opportunities in service sectors for foreign-invested enterprises.

Mitigating Job Displacement

AI application will be prioritized in labor-shortage and high-risk positions. The scope and pace of AI adoption in labor-intensive industries will be cautiously managed. Enterprises are encouraged to establish unemployment buffer periods, giving affected workers advance notice and transition support. Foreign employers should consider these expectations when implementing AI.

Employment Risk Assessment

An employment risk assessment mechanism for AI applications will be established. For market access projects with potential large employment impact, employment risk assessments will be conducted during review. This means foreign founders in certain AI application scenarios may need to prepare assessments.

Education, Training, and Talent

Universities and vocational schools will dynamically adjust curricula,布局 AI-related disciplines, and offer micro-specializations. School-enterprise joint training will be strengthened, with leading tech companies participating in curriculum development and teaching. AI education will be promoted at all levels. 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 leverage these training resources for workforce development.

Public Services and Worker Protection

AI will be used to improve job policy implementation, including smart identification and policy push. Public employment services will be upgraded with AI, including national job information databases and platforms. AI will be applied in labor dispute mediation and arbitration. Support for workers affected by AI displacement will be provided, including job guidance, training, and unemployment benefits. Labor rights protection in human-machine collaboration will be strengthened, regulating AI in HR management to prevent discrimination and privacy violations. Social security for flexible workers will be improved.

Income Distribution and Monitoring

Enterprises are guided to establish compensation systems suited to AI professionals, with incentives for high-level talent and skill-based minimum wage references. AI-driven work forms like intelligent agents will be nurtured. Employment risk monitoring and early warning will be strengthened through data sharing and research. A national survey on AI's employment impact will be conducted, and research centers will be established. Risk response mechanisms will be integrated into unemployment prevention systems.

Implementation

Local governments and departments must implement the guidelines, prioritizing employment and considering AI's employment impact. Human resources and development and reform departments will coordinate. Foreign founders should stay informed about local implementation details.

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.