Artificial intelligence is reshaping tech workforces in the U.S., but its impact on Chinese payrolls remains limited for now. Beijing’s focus on keeping urban unemployment near 5.5%, combined with lower labor costs, is tempering layoffs even as companies pursue AI. Algorithm engineers in China earn roughly 20,035 yuan a month—about $35,000 a year—well below Silicon Valley pay, reducing pressure to cut jobs. Chinese firms’ structures and culture also blunt AI-driven displacement: more in-office work, broader engineer roles, and larger headcounts in marketing and operations make automation less straightforward. While Alibaba trimmed staff as part of an AI pivot, Tencent’s headcount inched up and Huawei expanded R&D employment. Some Chinese engineers are returning from the U.S. amid immigration pressures tied to sudden layoffs. Still, high youth unemployment and a push for “human-centered” AI, as urged by a central bank adviser, underscore policy trade-offs. Separately, oil’s surge is prompting Chinese exporters to raise U.S. prices; Hong Kong–listed Zhipu AI doubled revenue but posted an adjusted loss; and China’s official manufacturing gauge hit a one-year high in March. Key data on inflation and trade are due in the coming days.
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