Recently, China’s government unveiled an ambitious plan to use artificial intelligence to employ a record 12.7 million college graduates in 2026. The scale of the incoming jobseekers — larger than the population of Belgium — prompted Beijing to officially declare AI a key tool for “modernizing” jobs amid mounting demographic pressure.

Labor Minister Wang Xiaoping told a session of the National People’s Congress that the technology strategy is designed to offset “growing uncertainty” in the labor market. To create 12 million new urban jobs, the government will revise internship and training programs in favor of the electric vehicle sector, UAVs (the “low‑altitude economy”), and generative AI. The shift signals a decisive move away from mass production models toward high-tech industries.

Markets reacted cautiously: the CSI 300 closed the week at 3,842.15. Investors worry that state investment in AI may not deliver immediate results because of a deep skill gap among young people. Goldman Sachs analysts note that the near-term challenge of keeping unemployment around 5.5% remains critical while productivity could rise over the long term.

Beijing’s stance sharply contrasts with global fears that automation destroys jobs. Instead, China is betting that AI will be a net creator of vacancies and help stabilize social conditions. A key risk to the strategy is upcoming trade negotiations with the United States, which could restrict China’s access to the technologies needed to implement the program.