Published by ChinaMNC · Longzhou
China’s New AI Employment Policy: What Foreign Founders Need to Know
A practical guide for foreign entrepreneurs on China’s latest policy to make AI adoption employment-friendly, covering talent, social security, and compliance requirements.
China’s New AI Employment Policy: What Foreign Founders Need to Know
The State Council of China has issued a new set of opinions aimed at adapting to the development of artificial intelligence (AI) technology while fostering an employment-friendly development model. For foreign founders operating or planning to register a company in China, this policy signals both opportunities and compliance considerations. Below is a summary of the key measures, drawn directly from the official government 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 activities such as data labeling and intelligent terminal manufacturing. The government will support the creation of AI-native enterprises and specialized “little giant” firms, including through financial support programs for job stabilization and expansion. Foreign founders in the AI sector may find new openings for collaboration or investment in these areas.
2. Supporting SMEs and Startups
An AI-focused startup support plan for small and medium-sized enterprises (SMEs) will be implemented, with open-source ecosystems promoted to boost innovation. The policy calls for public digital transformation services and encourages the development of lightweight, low-cost digital products and solutions. SMEs and individual businesses are to be guaranteed equal access to data, algorithms, and other intelligent production factors. This lowers the barrier to AI adoption and can benefit foreign-founded SMEs looking to upgrade their operations.
3. New Business Models and Entrepreneurship
Government investment funds, including the National Venture Capital Guidance Fund and the National AI Industry Investment Fund, will support AI enterprises in a market-oriented manner. High-level open-source communities and projects will be built to drive entrepreneurship and job creation. The policy also promotes entrepreneurship models combining technological achievements, industrial development, vocational skills, and livelihood needs. Foreign founders with AI-related innovations may access these support mechanisms, including incubation services.
4. New Occupations and Skills Development
The government will accelerate the development of new occupations and standards in the AI field, expanding demand for roles such as digital managers, AI engineers, and AI trainers. Local authorities are encouraged to add AI-related professional titles and conduct skill-level certifications. Universities and vocational schools are urged to dynamically adjust curricula, establish AI “micro-majors,” and strengthen industry-education collaboration. Companies, including foreign-invested ones, can participate in curriculum development and teacher training.
5. Mitigating Job Displacement
AI applications should be prioritized in labor-shortage and high-risk positions. The rollout of AI in labor-intensive industries must be steady and cautious to minimize impact on workers. Enterprises are encouraged to establish unemployment buffer periods, giving affected workers advance notice and transition support. A job-risk assessment mechanism will be introduced for AI application projects that may cause significant employment shocks, particularly in market access reviews. Foreign companies deploying AI should be aware of these assessment requirements.
6. Social Security and Labor Rights
The policy calls for optimizing labor rights protection in human-machine collaboration, regulating AI use in HR management, and combating algorithm-driven employment discrimination, fake recruitment, and privacy violations. Social security systems will be made more flexible and inclusive, with expanded pilot programs for occupational injury protection for new forms of employment. Foreign employers must ensure compliance with these evolving labor and social security rules.
7. Income Distribution and Risk Monitoring
Enterprises are guided to establish salary systems suited to AI professionals, with incentives for high-level talent and skill-based minimum wage references. The government will strengthen monitoring and early warning of employment risks related to AI, including data sharing and predictive models. Research on AI’s employment impact will be supported through surveys and research centers.
8. Implications for Foreign Founders
For foreign entrepreneurs, this policy underscores China’s focus on balancing AI-driven efficiency with employment stability. When registering or operating a company in China, especially in AI or tech sectors, founders should:
- Leverage SME support programs for digital transformation and access to data/algorithms.
- Engage in skills development by partnering with universities for talent pipelines.
- Prepare for employment risk assessments if deploying AI in sensitive areas.
- Ensure compliance with labor rights and social security regulations, including for flexible workers.
- Explore government funds and open-source initiatives for AI innovation.
These measures are part of a broader effort to create an employment-friendly development model. Foreign founders should monitor local implementation details, as specific requirements may vary by region.
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: For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.