Published by ChinaMNC ยท Zhouzhi
How China's New AI Employment Policy Affects Foreign Founders
China's State Council has issued new guidelines to make AI development employment-friendly. For foreign founders, this signals expanded opportunities in AI and related sectors, with supportive policies for startups, talent, and risk mitigation. Here's what you need to know.
China's AI Employment Strategy: Key Points for Foreign Founders
China's State Council has released a new set of guidelines aimed at harnessing artificial intelligence (AI) to create jobs while mitigating potential negative employment impacts. The policy, issued by the General Office of the State Council, outlines a comprehensive approach to building an "employment-friendly development model" in the AI era. For foreign founders looking to register or operate a company in China, these measures could shape opportunities and compliance requirements in the AI and tech sectors.
Expanding AI-Related Employment
The guidelines call for deepening the "AI+" initiative, encouraging eastern regions to develop core AI industries and guiding central and western regions to take on related upstream and downstream activities such as data labeling and smart device manufacturing. The goal is to foster new growth points for employment in AI.
The policy supports the creation of AI-native enterprises and specialized, high-growth SMEs. Qualifying companies can access special loans for stabilizing and expanding employment. For foreign founders, this means potential access to financial support if their business aligns with these priorities.
Support for SMEs and Startups
An AI startup support program will leverage open-source ecosystems to boost innovation among small and medium-sized enterprises. Public digital transformation services will be enhanced, and SMEs are encouraged to adopt low-cost, lightweight digital upgrades. The policy also ensures that SMEs and individual businesses can equally use data, algorithms, and other intelligent production factors. This lowers barriers for foreign-invested SMEs to adopt AI.
New Business Models and Funding
Government investment funds, including the National Venture Capital Guidance Fund and the National AI Industry Investment Fund, will support AI innovation in a market-oriented manner. High-level open-source communities and projects will be developed to stimulate entrepreneurship and job creation. The policy promotes various entrepreneurship models combining tech achievements, industry development, skills, and public needs. Foreign founders may find opportunities to tap into these funds and ecosystems.
New Occupations and Skills
The guidelines accelerate the development of new occupations and standards in AI, such as digital managers, AI engineers, and AI trainers. Localities are encouraged to add related professional titles and skill certifications. This indicates a growing demand for AI talent, which foreign companies can leverage when hiring.
Transforming Traditional Sectors
AI will be used to upgrade traditional industries, promoting human-machine collaboration in industrial and agricultural digitalization. The service sector will see new AI-driven models, expanding employment in producer and consumer services. Foreign founders in these areas can benefit from AI adoption.
Mitigating Job Displacement
The policy emphasizes a cautious approach to AI adoption 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 set up for AI projects that may cause significant employment shocks, especially in market access. Foreign companies should be aware of these requirements when deploying AI solutions.
Talent Development and Training
Universities and vocational schools will dynamically adjust curricula to meet AI talent needs, including interdisciplinary programs and micro-degrees. School-enterprise collaboration will be strengthened, with tech leaders participating in curriculum development and teaching. A special AI training program will target youth, migrant workers, and unemployed individuals. Public service platforms will offer free courses. Foreign founders can tap into this talent pool and collaborate with educational institutions.
Smart Employment Services and Policy Implementation
AI will be used to improve policy targeting and employment services. The national employment information resource database and public service platforms will be upgraded with intelligent analysis and precise services. AI will also be applied in labor dispute mediation and HR services, encouraging innovations like smart recruitment and virtual reality training. Foreign companies can expect more efficient government services.
Worker Rights and Social Security
The policy calls for research on worker rights in human-machine collaboration, stronger consultation mechanisms, and regulation of AI in HR management to prevent discrimination and privacy violations. Social security systems will be adapted to flexible employment and new work forms, including expanding pilot programs for occupational injury protection. These measures aim to balance innovation with worker protection, which foreign employers should incorporate into their compliance strategies.
Income Distribution and Risk Monitoring
Enterprises are guided to develop compensation systems suited to AI professionals, with incentives for high-level talent and skill-based minimum wages. The policy encourages investment in public-interest AI and open-source communities. A cross-departmental data-sharing mechanism will monitor employment risks, with early warning systems and research on AI's impact on jobs. Foreign founders should stay informed about these evolving regulations.
Implementation and Coordination
Local governments and departments are tasked with implementing the guidelines, with human resources and social security departments and development and reform commissions coordinating efforts. Major issues will be reported to the central government. Foreign founders should engage with local authorities to understand specific measures.
Takeaway for Foreign Founders
China's new AI employment policy presents both opportunities and compliance considerations for foreign founders. The emphasis on AI industry development, SME support, and talent training could benefit tech startups. However, the focus on risk assessment and worker protection means foreign companies must carefully plan AI deployments. Staying updated on local implementation will be key.
For assistance with company registration and operations in China, 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.