What's inside China's 18-point plan to protect workers from AI job losses?

The State Council guidelines call for employment-risk assessments of AI projects, advance notice to affected workers, retraining support and stronger labour protections as businesses adopt AI

China has issued an 18-point plan to protect workers from job displacement caused by artificial intelligence (AI), asking companies to assess the employment impact of AI adoption, provide advance notice to affected employees and support workers in transitioning to new roles.

 

The guidelines, issued by the General Office of China's State Council, seek to make the country's development model more employment-friendly as businesses increasingly adopt AI technologies, Reuters reported. 

 

The guidelines outline measures across six areas - creating jobs through AI, making AI adoption more employment-friendly, improving workers' digital skills, strengthening employment services, protecting labour rights and monitoring employment risks.

What does China's 18-point AI employment plan propose?

One key proposal is to encourage companies to establish an 'unemployment buffer period' when introducing AI on a large scale. During this period, businesses are encouraged to inform affected employees in advance and provide support for retraining, transfers to other roles and finding alternative employment.

 

 

The guidelines also call for employment-risk assessments of AI projects in areas subject to market-access requirements if their implementation could significantly affect jobs. Relevant departments are expected to coordinate support for workers facing displacement.

 

China has also called for a cautious approach to AI adoption in labour-intensive industries, with authorities asked to consider the scale, intensity and pace of deployment to minimise the impact on workers.

 

At the same time, AI applications are to be prioritised in jobs facing labour shortages or hazardous working conditions, where the technology can improve workplace safety and efficiency.

Focus on retraining and new job opportunities

The plan seeks to expand employment opportunities in the AI sector while helping workers adapt to changing skill requirements.

 

Universities and vocational institutions are encouraged to update their courses, introduce more AI-related specialisations and work with businesses to develop training programmes.

 

The guidelines propose specialised AI training for university graduates, young people, migrant workers and unemployed people. Public training centres and businesses are also expected to play a role in improving workers' digital skills.

 

Workers affected by AI-related job displacement are to receive targeted career guidance, skills training, job recommendations and support for starting businesses. Eligible unemployed workers should also receive unemployment insurance benefits.

 

The government has further proposed using AI to improve employment services, including job-matching platforms, recruitment services and the delivery of employment-related benefits.

Labour rights and social security protections

The 18-point plan also addresses concerns about workers' rights in workplaces increasingly shaped by human-machine collaboration.

 

It calls on businesses to protect employees' rights to wages, rest, leave and workplace safety. The government also plans to regulate the use of AI in human-resource management and address employment discrimination, fraudulent recruitment and privacy violations arising from the misuse of algorithms.

 

The guidelines propose improving social security coverage for people in flexible employment and new forms of work. They also call for adjustments to income-distribution mechanisms so that workers can benefit from the economic gains generated by AI.

Monitoring AI-related employment risks

China plans to strengthen the monitoring and early warning of employment risks associated with AI adoption. Government departments are expected to share industry and employment data and develop systems to track changes in job creation, job displacement and skill requirements.

 

The guidelines also call for including AI-related employment risks in existing mechanisms for preventing and responding to large-scale unemployment, alongside contingency planning and coordination among relevant authorities.

Why has China introduced the plan?

The measures come as AI adoption expands across China's economy, raising questions about how technological advancement could affect employment.

 

According to official figures cited by Xinhua, China's core AI industry was valued at more than 1.2 trillion yuan ($178.62 billion) in 2025, with more than 6,200 AI companies operating nationwide.

 

More than 30 per cent of manufacturing enterprises with annual main business revenue of at least 20 million yuan had adopted AI technologies by the end of 2025.