China calls for caution in replacing employees with AI to avoid unemployment

China has urged companies to exercise caution when replacing workers with artificial intelligence (AI) to mitigate unemployment risks. The government proposed gradual AI integration in labor-intensive sectors, prior notification to affected employees, and support for reskilling. The guidelines, consisting of 18 measures, acknowledge the potential job displacement due to automation and recommend assessing employment impacts, including alert mechanisms for large-scale unemployment scenarios. Experts highlighted the slow pace of labor legislation compared to technological advancements, raising concerns about worker protection. The guidelines also address algorithmic discrimination in hiring and privacy violations, although they lack binding obligations for companies. China's push for AI comes amid a competitive landscape with the U.S. and aims to sustain employment while modernizing its economy.