Are China’s AI advancements a double-edged sword hanging over already dire job prospects?
With China’s youth-unemployment rate an ever-present threat for young jobseekers, now many may have to adapt to an environment awash with AI automation
Following the emergence of Chinese artificial intelligence (AI) start-up DeepSeek, the nation’s rapid AI developments are sending shock waves through China’s job market, with companies already planning lay-offs as automation takes over repetitive tasks.
Young jobseekers are being forced to rethink their prospects amid a rapidly changing landscape and a slowing economy, as AI reshapes employment opportunities while also giving rise to new roles in technology and innovation, according to a labour specialist.
Last week, the CEO of Chicmax Cosmetics, the parent company of Chinese cosmetics brands such as Kans and One Leaf, allegedly instructed various departments to reduce their workforce. Some areas, such as customer service, were said to be facing a 95 per cent lay-off rate, with only 5 per cent of those proficient in AI staying, according to leaked internal communication that was said to be from the company’s chat group.
Weeks ago, DeepSeek stunned the tech world with its low-cost, high-performing large language model, rivalling or even surpassing ChatGPT – a generative AI chatbot developed by OpenAI – in certain respects.
Screenshots purportedly from Chicmax CEO Lu Yixiong’s WeChat account indicated that workforce adjustments were “aimed at making operations more scientific and efficient”, and that the company planned on laying off half of its legal department and 80 per cent of its content-innovation department, while “one team will be expected to handle the workload of the previous 20 teams”, the alleged screenshots showed.
Lu later clarified on his account that the company was not planning mass lay-offs; instead, they expected to increase the overall headcount by 800 this year, with the headquarters’ staff reaching 2,700 by the end of the year.
[AI is] here to stay, and it won’t stop evolving just because we fear it
AI will more likely replace repetitive and mundane jobs, but it cannot replace meaningful work that requires emotional intelligence or cross-disciplinary deep learning, said Zheng Qi, an associate professor specialising in labour relations at Capital University of Economics and Business, adding that new job opportunities, especially in fields related to emerging technologies and artificial intelligence, will be created.
“AI is not as frightening as we might imagine, and we should view it as a tool,” she said. “The focus now is on how to address the structural issues that arise from this transition, instead of avoiding AI’s development, because it’s here to stay, and it won’t stop evolving just because we fear it.”