Kathmandu— In Beijing and beyond, Chinese workers are facing a rapidly changing job market as artificial intelligence permeates industries from coding to content creation. Following a company inquiry into the potential for AI to replace human programmers, Fei Zhaojun was among 160 colleagues laid off – a scenario becoming increasingly common due to government-supported AI initiatives. This surge in automation is prompting individuals to adapt, businesses to innovate, and economists to consider the broader implications for China’s economy.

AI Adoption Accelerates Across Industries

The integration of AI into Chinese industries has seen a dramatic increase recently, with 47.5% of industrial enterprises now utilizing AI models and “agents” as of last year – up from just 9.6% in 2024. This growth is fueled by government policies like the “AI Plus” initiative and the five-year plan through 2030, which aim to establish China as a leader in technological innovation and compete with the United States. Applications are expanding beyond traditional office tasks; humanoid robots are beginning to sort parcels and perform public service roles, while food delivery robots threaten the livelihoods of millions of workers.

Workers Adapt Amid Displacement Fears

While some fear job losses due to AI, many Chinese workers appear surprisingly receptive to the technology. Shujing He, a senior analyst at Plenum, notes that there’s “far less anti-AI sentiment in China” compared to other nations, with individuals often eager to explore AI-enabled ventures after displacement. Fei Zhaojun, a former programmer, is now creating video blogs while seeking new opportunities, embracing the technology even after questioning its capabilities. Similarly, translator Du Qinchun has found temporary increased work training an AI model, though he acknowledges industry pay cuts.

Economic Concerns Mount Alongside Innovation

The rapid adoption of AI isn’t without economic concerns. China's economic growth is already slowing, and consumer spending is being hampered by job insecurity. The housing market downturn further complicates the situation. Experts like Eswar Prasad at Cornell University warn that while AI may boost productivity, it could also worsen employment problems and threaten social stability. Furthermore, some industries are experiencing significant contraction; the number of live-action short video series fell approximately 75% in the first quarter of this year.

Demographic Shifts May Offset Job Losses

Despite concerns about displacement, some experts suggest that China’s rapidly aging population could mitigate the negative effects on employment. By 2050, China is projected to have fewer than two working-age adults for each retiree, compared to over 2.5 in the U.S., according to Xuenan Cao of San Francisco Bay University. This demographic shift suggests that automation may help offset a shrinking workforce rather than solely posing a threat to jobs. However, the International Labor Organization notes women face higher risks of job loss due to AI as they are more often employed in roles susceptible to automation and underrepresented in STEM fields.

The long-term impact of AI on China’s job market remains uncertain, but its rapid integration into various industries is already reshaping the employment landscape and prompting both adaptation and concern among workers.

(With inputs from RN)

Originally published on abcnews.com.np.