Artificial intelligence is the new workforce language around the globe, with most sectors embracing this technology to match the current technological wave.

AI in China: Historical Roots and Current Landscape
Introducing AI and AI-powered services and processes in China presents a complex landscape concerning GDP and the labor market. Although the roots of AI in China are traced to the 1970s, the Chinese government embraced AI in the early 2000s. Baidu’s Ernie Bot is the most used AI in China and is mostly preferred due to its efficiency in understanding the natural Chinese language.

Economic Growth and AI’s Role in China
The International Monetary Fund (IMF) data indicates that as of 2025, the Chinese GDP is around 19.5 trillion dollars, marking a growth rate of about 2.8% and an estimated growth rate of about 4.5% in 2026. The growth is attributed to various factors, including manufacturing and high-tech investment, which have relied on AI.

AI’s Impact on the Labor Market
AI has taken over most sectors in the Chinese community and the globe, which are economically and socially impactful. While the country trains employees to work in various fields, the automation of processes has a detrimental impact on the labor market, including outpacing new job creation. According to the IMF, AI is likely to affect 40% of jobs globally, and the Chinese workforce is no exception.

Balancing GDP Growth and Job Losses
Despite the argument that AI is contributing to the growing GDP of China, there is a need to evaluate the contribution of job losses to the GDP and whether it is likely to hinder anticipated GDP growth. It is key to evaluate probable outcomes and develop strategies to maintain a balance and steer economic growth.

Confidence in AI Models and Regional Trends
According to the IZEA China Trust report, Chinese individuals are more comfortable engaging with AI influencers compared to Americans. This demonstrates the level of confidence in AI models in China and most Asian countries. Increased AI livestream hosts and high audience engagement further reflect this trend.

AI’s Role in Economic Growth Across Asia
The Asian continent, led by China, has historically been known for its innovation and embracement of technology. In China and Singapore, AI has steered economic growth through sectors such as logistics, healthcare, and manufacturing.

Automation and Workforce Challenges
In the next two decades, China looks forward to further automating about 26% of existing jobs, creating a different scenario for the livelihood and survival of Chinese employees. Despite the positive implications of AI, such as the anticipated GDP growth of 10-18% by 2030, it is critical to evaluate whether policies are protecting the well-being of employees.

The Shrinking Labor Market and Economic Slowdown
The labor market is already shrinking. Software development, education, healthcare, finance, customer service, and sales have faced worker displacement and decline. Although China is undergoing a recession after the Covid-19 pandemic, it is also experiencing an economic slowdown due to a shrinking workforce and other factors.

The Need for Balanced Policies
China, in its quest to dominate AI and overtake the US, must consider creating a balance to mitigate economic challenges due to innovation. The Chinese government should develop policies that maximize AI benefits while mitigating impacts such as income inequality and job displacement.