On June 11, 2026, the Chinese language site of German international broadcaster Deutsche Welle reported that Chinese companies are secretly carrying out small-scale, gradual personnel reductions to avoid problems caused by mass job losses accompanying the spread of AI.

The article introduced that while the Chinese government wants to improve production efficiency through the spread of AI, it is also concerned that mass job losses could lead to social unrest and threaten social stability.

Furthermore, it mentioned that China's labor law stipulates that prior approval is required when companies carry out layoffs exceeding 10% of their total workforce, and that courts have ruled against dismissals citing AI replacement as the reason in at least three past lawsuits.

And then, as voices from the field, a senior executive from a major Chinese fintech company and an engineer involved in Alibaba's (e-commerce giant) cloud business explained that "companies are avoiding large-scale layoffs and opting for gradual reductions through organizational restructuring or natural attrition." This was evaluated as a contrasting move to Western companies that openly carry out large-scale layoffs.

The article introduced that in the "AI+" action plan put forward by the Chinese government, a goal has been set to increase AI penetration in key industries to 70% by 2027, while also conveying an analyst's warning that the speed of new job creation generated by AI is not keeping up with the speed at which existing jobs are being replaced.

Furthermore, it touched upon data presented in a Citigroup report showing that approximately 9.6% of jobs in China, and 13.6% among young people in their 20s, are at high risk of being replaced by AI.

Following that, while Chinese state media are trying to appease public opinion by stating "AI will not take people's jobs," the fear that jobs might be taken by machines is spreading, with the topic of "AI anxiety" attracting attention and debates raging on China's social media platform Xiaohongshu (RED), which was introduced as a social background. (Edited and Translated by Kawajiri)