Published by ChinaMNC · Zichuan
China's AI Employment Policy: What Foreign Founders Need to Know
A practical guide for foreign founders on China's new policy to make AI development employment-friendly, covering talent, risk management, and compliance.
China's New AI Employment Policy: A Guide for Foreign Founders
The State Council General Office has issued a new set of opinions aimed at adapting to AI technology development and building an employment-friendly development model. For foreign founders operating or registering a company in China, this policy signals both opportunities and compliance obligations. Below is a summary of the key points, framed as practical guidance.
1. Expanding AI Job Opportunities
The policy encourages the implementation of the "AI+" initiative, with eastern regions focusing on core AI industries and central and western regions承接 data labeling and intelligent terminal manufacturing. Eligible enterprises can access special loans for stabilizing and expanding employment. Foreign founders in AI-related sectors may find new business opportunities and financing support.
2. Support for SMEs and Startups
An AI SME entrepreneurship support program will be implemented, promoting open-source ecosystems and digital transformation. Public services will offer "small, fast, light, precise" digital products, and SMEs are encouraged to use data and algorithms equally. This lowers the barrier for foreign founders running small tech firms.
3. New Employment and Entrepreneurship Models
Government investment funds, such as the National Venture Capital Guidance Fund and the National AI Industry Investment Fund, will support AI enterprises in a market-oriented way. High-level open-source communities and projects will be deployed. Entrepreneurship models combining tech achievements, industry development, vocational skills, and livelihood needs will be promoted. Foreign founders can leverage these resources for incubation and funding.
4. Developing New AI Occupations
New occupations and standards will be developed, increasing demand for roles like digital managers, AI engineers, and AI trainers. Localities may add related professional titles and skill certifications. This creates a talent pool for foreign companies.
5. Tapping Traditional Sector Potential
AI will be used to upgrade traditional industries, promoting human-machine collaboration in manufacturing and agriculture. New service models will expand employment in producer and consumer services.
6. Mitigating Job Displacement
AI applications will be prioritized in labor-shortage and high-risk positions. The rollout in labor-intensive industries will be steady, with companies encouraged to establish unemployment buffer periods, notify affected workers in advance, and provide transition support.
7. Employment Risk Assessment
A risk assessment mechanism will be established. For AI projects that may cause significant employment impact in market access, employment risk assessments will be conducted alongside project reviews. Other projects will assess risks as needed. Foreign founders should factor this into project planning.
8. Talent Cultivation
Universities and vocational schools will dynamically adjust majors, add AI-related interdisciplinary programs, and offer micro-degrees. School-enterprise joint training will be strengthened, with tech leaders participating in curriculum development. AI education will be promoted at all levels. Foreign firms can partner with institutions for talent development.
9. Special Training Programs
The "Skills Light Up the Future" training action will be deepened. Localities will offer project-based and order-based digital training aligned with AI market needs, targeting college graduates, migrant workers, and unemployed individuals. Public training bases and online platforms will provide more free courses. Foreign founders can encourage employees to utilize these resources.
10. Smart Employment Services
AI will be used to identify policy beneficiaries, push employment policies intelligently, and improve "policy finding people" efficiency. Employment service platforms will be upgraded for data collection and precise services. AI will also be applied in labor dispute mediation and HR services, including job matching models and virtual reality training. Foreign companies can adopt these tools to streamline HR.
11. Support for Job Transitions
Workers affected by AI-induced displacement will receive targeted job guidance, skills training, job referrals, and entrepreneurship support. Unemployment insurance benefits will be paid on time. Foreign founders should be aware of these obligations when restructuring.
12. Labor Rights Protection
Research on labor rights in human-machine collaboration will be strengthened. Companies must protect workers' rights to pay, rest, and safety. The use of AI in HR management will be regulated to prevent algorithm abuse, employment discrimination, false recruitment, and privacy violations. Foreign founders must ensure compliance in their HR algorithms.
13. Social Security for Flexible Employment
Social security systems will be made more flexible and inclusive, encouraging flexible workers and new employment forms to join urban employee pension insurance. Pilot programs for occupational injury protection will expand. Foreign companies hiring flexible workers should stay informed.
14. Income Distribution
Enterprises are guided to establish salary systems suited to AI professionals, with incentives for high-level talent based on knowledge value. Skill-based minimum wage guidelines will be implemented. Companies are encouraged to invest in public-interest AI and open-source communities. Foreign founders should review compensation structures.
15. Risk Monitoring and Research
Cross-departmental data sharing on AI industry and employment will be enhanced, with intelligent monitoring models. Early warning systems for employment risks will be strengthened. Special surveys and research centers on AI's employment impact will be established. Foreign founders should monitor these developments for strategic planning.
16. Risk Response Mechanism
AI employment risks will be included in the mechanism for preventing large-scale unemployment. Contingency plans will be formulated, and labor relations risks will be jointly addressed. Foreign companies should have contingency plans for AI-related workforce adjustments.
Conclusion
This policy outlines a comprehensive approach to making AI development employment-friendly. Foreign founders should integrate these points into their China strategy, from talent recruitment to compliance. For assistance with company registration and operations in China, contact ChinaMNC at +86 153 1898 8535 via WhatsApp or WeChat.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.