China calls for caution in replacing employees with AI

China has urged companies to exercise caution in replacing workers with artificial intelligence (AI) and proposed measures to mitigate the technology's impact on employment. The government suggests a gradual introduction of AI in labor-intensive sectors, prior notification of affected employees, and support for reskilling. The guidelines recognize the risks of job displacement due to automation and recommend assessing employment effects, including mechanisms for potential large-scale unemployment scenarios. Experts warn that labor laws are lagging behind technology, creating gaps in worker protection. The guidelines also address algorithmic discrimination in hiring processes and privacy violations, although they do not impose general obligations or specific deadlines on companies. China's push for AI development is part of its efforts to sustain employment and modernize its economy amid competition with the U.S.