China’s AI boom is reaching millions of people, but it is also cutting jobs and inflaming tensions with the United States.
China has moved ahead of the United States in using artificial intelligence tools in everyday use, according to technology industry leaders and investors gathered in Shenzhen this week.
But those same voices are sounding the alarm about excessive valuations among Chinese companies, even as they praise the country’s progress on the ground.
China’s AI boom comes at the expense of workers
Qi Zhang, general manager of the banking department of Alibaba Cloud Intelligence Group, made the remarks on Thursday at the 2026 HKEX Future Tech Summit in Shenzhen.
He credited China’s current economic situation and its large pool of engineers and entrepreneurs with giving the country a strong platform to bring AI goods to real consumers.
But the benefits are not without discomfort.
Artificial intelligence is changing how companies hire and manage employees in Chinese offices and boardrooms.
Teams change, fewer graduates are hired, and some jobs are suddenly eliminated.
Workers and contractors claim that artificial intelligence is now taking over tasks previously performed by humans.
Companies prioritize cost-cutting and efficiency at the expense of retaining a large number of employees. This raises a difficult question: Is this possible? China continues to develop artificial intelligence While maintaining job stability?
Unlike previous waves of automation that essentially replaced factory work, AI is now taking over tasks once handled by analysts, writers, assistants, and other office workers.
For companies facing intense competition and thin profit margins, this is often the cheapest option.
However, it is becoming more and more difficult to overlook the impact this has on employees.
American pressure and online influence campaigns intensify the dispute
At the same time as artificial intelligence applications are spreading in Chinese workplaces, the country’s largest technology companies are under renewed pressure from the United States.
This month, the US Department of Defense added Alibaba Group Holding, Baidu, and electric car maker BYD to its list of companies.The menu is called “1260H”.It is a list of companies that the Pentagon says have ties to the Chinese military.
The updated list now includes 188 companies.
The move came just weeks after a summit between Presidents Donald Trump and Xi Jinping in Beijing, which failed to calm the rivalry between the two countries over technology.
While listing does not immediately prevent normal business activity, it puts… US investors are on notice It could signal upcoming restrictions or even efforts to delist companies from US stock exchanges.
The Pentagon’s move follows an order issued by Congress in 2021 aimed at countering China’s “military-civilian fusion” strategy.
This strategy aims to blur the lines between China’s civilian technology industry and its military operations.
According to a report issued by the US State Department in August 2025, China uses this approach to access foreign technology through investments, academic partnerships, joint ventures, and hiring skilled talent from abroad.
The rivalry between the two countries has now moved beyond trade and investment, and is showing up in online spaces as well.
Two sets of ChatGPT accounts The OpenAI claims originated in China They were used to conduct influence efforts targeting American audiences.
The company called the first set a promotional “data center cart.”
The operation generated social media posts and images claiming that the construction of data centers in the United States is leading to higher electricity bills for ordinary families.
The second campaign focused on criticizing US tariffs, portraying them as an attempt by Washington to gain an advantage in the global technology race.
Interestingly, the prompts used to create the content clearly asked the AI not to mention Chinese leader Xi Jinping.
Instead, only President Trump was supposed to appear in the posts.
OpenAI said the efforts were notable because they specifically targeted discussions about its platform and major U.S. data center projects.
According to the company, it appears to be an attempt by foreign actors to influence the debate about America’s technological future while concealing their identity and motives.
