Chinese Courts Rule in Favor of Workers Replaced by AI

Chinese courts have ruled in favor of workers replaced by artificial intelligence, including a graphic designer from Guangzhou who was dismissed after the company cited changes in circumstances. Judge Chen Xiyuan ruled that employers cannot shift technology risks onto workers and must offer alternative roles. Similar rulings have been recorded in other cities, but experts note that enforcement in China is lacking.

Chinese courts have ruled in favor of workers replaced by artificial intelligence in several cases in recent months. In June, a court in Guangzhou upheld a lower court's ruling that the dismissal of a graphic designer named Wei, who had worked at a tech company for over three years, was unlawful. The company, whose name was not disclosed, fired him "due to significant changes in objective circumstances" and paid him 41,000 yuan ($6,000), but the court ordered it to pay him an additional 35,000 yuan. Judge Chen Xiyuan wrote in the ruling: "Employers cannot shift the risks related to technology updates onto workers," adding that companies should offer workers alternative roles or training before dismissal. Similar rulings have been documented in other Chinese cities. Labor lawyer Guang Li said that other countries are closely watching developments in China, and that Chinese laws protect workers more than in Germany, Europe, and the US, but the issue is enforcement. Professor Eli Friedman from Cornell University said that the state lacks the capacity or interest to enforce its laws more vigorously, and that Chinese workers are particularly vulnerable. He cited an example of a 35-year-old tech worker from Hangzhou who won a lawsuit but is perceived by many companies as too old. According to official data for June, one in six young Chinese aged 16-24 struggles to find work.