Quick overview

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China is pushing the large-scale adoption of Artificial Intelligence as a central pillar of its economic agenda for the next five years, hoping the technology will offset the aging of its workforce and reverse the country’s long-term slowdown. The initiative comes as Beijing sets its lowest growth target since 1991.

The strategy was unveiled at the opening session of the National People’s Congress, where the government outlined plans to harness what it described as AI’s “job-creation effect.”

China’s Minister of Human Resources, Wang Xiaoping, said the country is working to “actively leverage” AI to create new jobs and expand employment opportunities for the 12.7 million university graduates expected to enter the labor market this year.

Rising youth unemployment

However, the government’s optimism contrasts with warnings from international institutions and academic research. The International Monetary Fund estimates that AI could affect about 40% of jobs worldwide, a figure that rises to 60% in advanced economies.

Similarly, researchers from Stanford University have identified a “significant and disproportionate” impact on workers just entering the U.S. labor market — a concern that recently echoed across Wall Street.

These concerns are particularly relevant given China’s challenging macroeconomic backdrop. The country has set a GDP growth target between 4.5% and 5%, the lowest since 1991, while youth unemployment remains elevated. At the same time, roughly 300 million people are expected to retire over the next decade, putting additional pressure on the pension system.

Industrial transformation and university reform

During the parliamentary sessions, executives from state-owned enterprises — historically associated with job stability — acknowledged that AI will drive significant internal restructuring.

Zhu Huarong, chairman of Changan Automobile, expressed optimism, predicting that technological expansion will transform the automotive industry into a “booming sector,” reversing its current decline.

In education, Chinese universities are already adapting their curricula. ShanghaiTech University has launched AI-focused “micro-specializations” aimed at developing skills that are harder to automate, including interdisciplinary learning, critical thinking, and creativity.

“We must train them to ask questions. If your thinking is not sharp, you won’t beat the robots,” said the university’s president, Yin Jie.