China bets on artificial intelligence to revive growth amid jobs pressure and an ageing population
- By Tahani Elghazaly
- Published
China is moving to expand the use of artificial intelligence across broad parts of its economy as it looks to lift productivity, ease the effects of slower growth and respond to pressures created by an ageing population and a shrinking labour force. The push comes as Beijing set its 2026 growth target at 4.5% to 5%, the lowest range it has targeted since the 1990s.
According to Reuters, Beijing is treating AI as an economic tool that extends beyond the technology sector into manufacturing, logistics, education and healthcare as part of a wider plan to modernize the real economy and improve efficiency in sectors facing labour shortages or operational strain. China’s new five-year plan also called for faster integration of AI and robotics throughout the economy.
The strategy comes as China faces a fast-moving demographic challenge. About 300 million people are expected to retire over the next decade, adding pressure to labour markets, pension systems and public finances. China’s population also fell for a third straight year in 2024.
At the same time, the AI push is raising concerns about employment, especially for younger workers, as questions persist over whether new technology will create enough jobs to offset the roles or entry-level pathways it could displace.
Overall, Beijing is positioning AI as a central part of its economic strategy to improve efficiency, support competitiveness and manage the effects of population ageing, while closely watching the impact on the labour market.
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