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AI Adds Pressure to China’s Weak Job Market

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Artificial intelligence is quickly changing China’s job landscape, just as the economy is slowing down.

Chinese companies are adopting AI tools for tasks like marketing, coding, and communication. But this shift is also putting millions of traditional jobs at risk. The trend is becoming more visible, especially in large tech firms.

Zhou Hongyi, the founder of 360 Security Technology, said in a widely shared video that he plans to remove his entire marketing department and replace it with AI tools. He claims this move could save the company millions. His statement has sparked concerns over how quickly companies are moving to cut jobs.

Other companies are also following the same path. Meituan, a leading food delivery service, said over 50% of its new code is now generated by AI, up from just 27% a few months ago. Recruiters are also looking for graduates with AI skills. Experts say that not knowing how to use AI could make it difficult for young people to find jobs.

Startups and training centers are now offering support. HangHang AI, a company focused on AI education, has launched a new platform to fund early-stage AI projects. It aims to support 1,000 small projects over three years by offering startup funding from private investors.

Meanwhile, the Chinese government is trying to balance technology growth with employment needs. This year, the Ministry of Finance set aside nearly 67 billion yuan to support jobs. Other ministries have launched pilot programs, including using robots to help care for the elderly.

Despite these efforts, job uncertainty is growing. Since the pandemic, many companies in China have cut wages, cancelled bonuses, or shut down entirely. The pressure is also leading more people to sell online or try their luck on livestream platforms.

A deeper issue is the country’s strong work culture, which values long hours and high competition. In industries like electric vehicles, this has created unhealthy competition and job stress, which the government is now urging companies to reduce.

Adding to the pressure are rising trade tensions. China's exports to the U.S. dropped by 34% last month. About 16 million Chinese jobs are linked to exports to the U.S., according to Goldman Sachs. New data from May also shows job losses across many sectors, especially in construction and small businesses.

Analysts believe this could lead to more government action. Policy announcements are expected in July, which may include new measures to boost employment.

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