China’s Biggest Weakness on AI by Carl Benedikt Frey
When a state can credibly promise that labor displacement will not mean destitution, workers and their representatives are more likely to accept technological change. But since China can promise no such thing, its lack of a robust welfare state has emerged as a fundamental weakness in the broader AI race.
OXFORD—In late April, a Chinese court ruled that an AI firm could not legally dismiss an employee simply because his role had been automated. Shortly thereafter, Chinese regulators reportedly suspended new autonomous-vehicle licenses nationwide in response to a mass robotaxi failure in Wuhan, a city where cab drivers had long petitioned authorities to slow the technology’s rollout. And all the while, Chinese state media has been criticizing companies for contemplating AI-driven layoffs, arguing that they have a duty to protect their employees.
