As in the rest of the world, artificial intelligence (AI) is expanding rapidly across China. From driverless taxis to filmmaking, AI’s use is growing across sectors — and, as in other industries, it is reshaping employment.
Robotaxis cut into taxi drivers’ earnings
The experience of Yao Xinong, a 45-year-old taxi driver in Wuhan, illustrates the trend. In 2022, tech company Baidu launched its driverless taxi service, “Apollo Go,” in the city. Yao’s income subsequently fell by nearly 40 percent. In March this year, several Apollo Go vehicles suddenly stalled on the road, leaving passengers stranded for hours. The vehicles were pulled from Wuhan’s streets for several months for investigation.
Taxi drivers also staged protests against the rollout of driverless taxis in Wuhan in 2024. However, it remains unclear how many participated, as news of the protests was quickly censored.
Pressure on the gig economy too
AI’s expansion in China is occurring at a time when the country’s labor market has already weakened. Industries that were once major sources of employment, such as real estate and education, have fallen into crisis. Many workers have turned to ride-hailing and other gig work to sustain their income.
According to one research organization’s estimate, the number of people in flexible or informal employment in China could exceed 320 million this year, up from around 160 million in 2019 — meaning roughly 44 percent of China’s total workforce could be engaged in this kind of work.
Government shifts its stance on AI
Speaking at the World Artificial Intelligence Conference in Shanghai, Chinese President Xi Jinping said AI “must become an important driving force for shared prosperity and security for all.”
However, the Chinese government is also growing more cautious about AI’s potential negative impact on employment.
White-collar workers losing jobs too
AI’s impact isn’t limited to taxi drivers. Discussion has also begun around white-collar workers at various Chinese companies who have lost their jobs to AI.
Several Chinese courts have recently ordered compensation for workers who lost their jobs because of AI.
Still, many workers fear AI could become an obstacle even before they are hired.
What comes next
Many analysts believe China’s government is better positioned than the United States to manage the impact of AI-driven job losses.
If it chooses to, the government can order companies to hire a set number of workers, and Beijing could even impose employment-protection policies around AI use. However, uncertainty remains over how quickly such protections for workers will materialize.
According to The Guardian.
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