Published by ChinaMNC · Yanliang
China’s New AI and Employment Policy: What Foreign Founders Should Know
A practical guide for foreign founders in China to the State Council’s 2026 opinions on adapting to AI development and building an employment-friendly development model, covering new jobs, SME support, training, worker protections and risk monitoring.
Why This Policy Matters for Foreign Founders
The State Council General Office has issued opinions, with State Council approval, on adapting to artificial intelligence development while building an employment-friendly development model. Employment is described as the most fundamental element of people’s livelihoods. For foreign founders registering or operating a company in China, the document signals how central and local authorities intend to encourage AI adoption while managing its effects on jobs. It is not a licensing rulebook, but it sets the direction for support programs, training, risk assessment and labor protections that may shape how AI-related businesses operate.
Guiding Approach
The policy is framed around a people-centered development philosophy, combining investment in physical assets with investment in people, coordinating development and security, and maintaining an employment-first orientation. The stated goal is to use AI to support high-quality, full employment. Authorities aim to strengthen AI’s positive effects—creating jobs, upgrading traditional roles, improving job quality and stimulating entrepreneurship—while effectively mitigating job displacement. The intended outcome is inclusive development in which technological progress, industrial upgrading, employment promotion and livelihood improvement move together.
New Employment Space in Emerging AI Fields
The document calls for deeper implementation of the “AI+” initiative. Eastern regions are encouraged to locate core AI industries, while central and western regions are guided to take on upstream and downstream activities suited to local conditions, such as data annotation and intelligent terminal manufacturing. The aim is to form new employment growth points in AI.
Authorities also plan to accelerate the cultivation of AI-native enterprises and specialized, refined, distinctive and innovative “little giant” enterprises. Eligible companies may be included in special loan support for stabilizing and expanding employment under existing rules. For founders, this suggests that qualifying AI-related enterprises may find relevant financial support programs, though eligibility depends on the applicable rules.
Support for SMEs and Startups
The policy introduces an AI entrepreneurship support plan for small and medium-sized enterprises, using open-source ecosystems to encourage innovation and business creation. Public services for digital transformation are to be strengthened, and development of “small, fast, light and precise” digital products and solutions is encouraged.
Small and micro enterprises and individual businesses are to be guaranteed equal access to intelligent production factors such as data and algorithms in accordance with the law. They are supported in exploring low-cost, lightweight intelligent upgrading paths to lower the threshold for AI adoption and improve their capacity to absorb employment.
Government investment funds—including the national venture capital guidance fund and the national AI industry investment fund—are to support innovative AI enterprises in a market-based manner. High-level AI open-source communities and quality open-source projects are planned to generate entrepreneurship and employment effects. Entrepreneurship models linking scientific and technological achievements, industrial development, vocational skills and livelihood needs are to be promoted, with support policies and incubation services for AI application and technology-transfer startups.
New Occupations, Traditional Sectors and Displacement
Around AI scenario development and large-scale application, authorities will accelerate the creation of new occupations and publish new occupational standards. Demand is expected to expand for roles such as digital management professionals, AI engineering technicians and AI trainers. Localities are encouraged to add relevant professional titles for evaluation and conduct AI-related vocational skill level recognition.
In traditional sectors, AI is to support industrial upgrading, with human-machine collaboration promoted in all-factor intelligent industrialization and digital-agricultural transformation. New AI-driven service models are to be developed, extending producer services toward specialization and higher value-chain positions while promoting high-quality, diverse and convenient consumer services.
To mitigate displacement, AI should first be applied in roles facing labor shortages or high environmental risk. The scope, intensity and pace of AI application in labor-intensive industries should be handled prudently to minimize impact on workers. Enterprises are encouraged to explore unemployment buffer-period systems, giving affected workers advance notice and transition or reassignment support during large-scale AI deployment.
Risk Assessment and Talent Development
A job-risk assessment mechanism for AI applications is to be established. For AI application projects in market-access areas that may cause significant employment shocks, employment risk assessments are to be conducted alongside project review, with authorities coordinating transition and reassignment support. Other AI projects may conduct assessments as appropriate.
Universities and vocational schools, including technical schools, are encouraged to dynamically adjust disciplines and majors, make extraordinary arrangements for urgently needed AI disciplines, build interdisciplinary programs and add AI “micro-majors.” Joint school-enterprise training is encouraged, with leading technology enterprises participating in curriculum development, teacher training and teaching facilities. AI education is to be advanced at all stages, with students practicing in enterprises and engineers teaching in schools.
A special AI training plan is to be implemented under the “Skills Light Up the Future” training action. Localities running project-based and order-based digital skills training should align with AI market demand and encourage college graduates, young people, migrant workers and unemployed persons to join AI employment and entrepreneurship training. Public training bases, enterprise training bases and high-skilled talent training bases may be used. Public-benefit courses are to be offered through national smart education and technical skills online platforms, and AI skills competitions are encouraged within existing vocational skills contests.
Service Delivery, Worker Protections and Monitoring
Authorities plan to use AI to improve policy implementation—intelligently identifying service recipients, pushing employment policies and improving “policy finds people” effectiveness—and to upgrade employment services. The national employment information resource database, the national college student employment service platform and the “China Employment” public service platform are to be upgraded with better data aggregation, intelligent analysis and precise services. National AI application pilot bases are to be developed, grassroots public employment service networks intelligently upgraded, and AI applied in labor dispute mediation and arbitration. AI-enabled human resources services—such as recruitment models, intelligent interviews and virtual reality training—are encouraged.
Workers affected by AI-related displacement are to receive targeted career guidance, skills training, job referrals and entrepreneurship support, and eligible insured unemployed persons are to receive unemployment insurance benefits promptly and in full.
The policy calls for research on worker rights protection adapted to human-machine collaboration, improved consultation and coordination mechanisms, and supervision of enterprises’ compliance with wage, rest and occupational safety obligations. AI use in human resources management is to be regulated, and illegal acts such as employment discrimination caused by algorithm abuse, false recruitment and infringement of privacy or rest rights are to be addressed according to law.
Social security is to become more flexible and inclusive, with support for flexible workers and new employment-form workers to join urban employee basic pension insurance and expansion of occupational injury protection pilots. Income distribution mechanisms are to be improved, including pay systems suited to AI professionals, incentives oriented toward knowledge value, and implementation of minimum wage classification guidance for skilled workers. Enterprises are encouraged to invest more in public-interest AI technology, services and open-source communities.
Cross-departmental data sharing on AI-related industries and employment is to be strengthened, with regional and sectoral intelligent monitoring models, improved early warning and forward-looking research. Special surveys will track AI penetration, job creation and displacement, and skills demand; AI employment research centers will be established using existing university and research resources, and national social science fund projects will support forward-looking research on employment and income distribution. AI employment risks are to be included in the mechanism for preventing and resolving large-scale unemployment risks, with contingency plans and joint handling of labor relations risks.
Localities and departments are to implement the opinions in light of actual conditions, strengthen the employment-first policy orientation, consider AI’s employment impact and accelerate the building of an employment-friendly development model. Human resources and social security departments and development and reform departments are to strengthen coordination, promote implementation, and guide public communication. Major matters are to be reported to the Party Central Committee and the State Council through established procedures.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.