Key Takeaways
- The March 2024 malfunction of Baidu’s Apollo Go robotaxis in Wuhan stranded riders for hours and temporarily halted the service, unintentionally boosting wages for human taxi drivers like Yao Xinnong.
- China is rolling out AI at an unprecedented scale while its labor market grows increasingly precarious, with flexible‑employment workers projected to reach 320 million (≈44 % Shelly.com%%) of the workforce by 2024.
- Taxi‑driver protests against Apollo Go were quickly censored, but a Wuhan taxi company’s open letter criticized the policy for allowing technology to “monopolise resources and take away the livelihoods of people at the bottom of society.”
- State media and officials have begun echoing workers’ concerns, pledging to address AI’s impact on employment and urging a mindset shift that treats AI as a tool rather than a threat.
- White‑collar workers are also feeling the pressure: recent court rulings have awarded compensation for AI‑driven layoffs, yet freelancers such as cinematographer Tian Zemin report income drops of 60 % and fear being replaced before they can even secure a job.
- AI’s rapid advancement in creative fields—from crude avatars to convincing digital clones capable of carrying feature‑length films—has outpaced the ability of many professionals to adapt.
- Analysts suggest China’s centralized governance could mitigate job losses through hiring quotas or other directives, but many workers doubt protections will arrive in time.
- The prevailing advice for affected workers is to adapt quickly and seek niches where AI still falls short, although that “corner” is steadily shrinking.
Overview of the Apollo Go Incident in Wuhan
In March, several cars from Baidu’s Apollo Go fleet of driverless taxis halted abruptly on Wuhan’s tree‑lined streets, leaving riders stranded for hours due to a reported “system malfunction.” The incident prompted authorities to withdraw the robotaxis from city roads for months while investigations proceeded. Ironically, the outage became a windfall for human drivers. Yao Xinnong, a 45‑year‑old taxi driver, told the Guardian, “I don’t really like them, to be honest… Their impact has been huge.” He noted that his wages, which had fallen by roughly 40 % since Apollo Go launched in 2022, rebounded as passengers returned to conventional cabs. The episode highlighted both the promise and the peril of deploying AI‑driven transport at scale.
Social Tensions and Labor Market Precariousness
China’s push to embed artificial intelligence across industries is unfolding against a backdrop of a fragile labour market. The country already grapples with high unemployment, and tens of millions of workers have shifted from formal jobs into the gig economy. According to a think‑tank cited in the article, flexible‑employment workers are expected to rise to 320 million this year—up from 160 million in 2019—representing about 44 % of China’s total workforce. Taxi drivers, ride‑hailing workers, and others in this cohort now confront a new competitor: autonomous vehicles that can operate without rest, wages, or benefits.
Taxi Drivers’ Protests and Government Response
The rollout of Apollo Go sparked dissent among Wuhan’s taxi drivers. In 2024, they staged protests against the expansion of robotaxis, although the exact turnout remains unknown because news of the demonstrations was swiftly censored. Several drivers interviewed said they had heard about the protests but denied personal involvement, reflecting the climate of self‑censorship. A Wuhan taxi company took the uncommon step of issuing a public letter that condemned the policy, stating, “The recent rise of autonomous ride‑hailing vehicles has allowed technology to monopolise resources and take away the livelihoods of people at the bottom of society.” When the Guardian visited the company’s office in July, an employee declined to comment, citing a police agreement that barred interviews and risked detention for violations. Nonetheless, the state‑run Workers’ Daily later published an editorial acknowledging that “employment rights were facing new challenges” in the age of AI, warning of a “collision between traditional employment rules and the iteration of AI technology.”
Policy Shifts Toward AI and Employment
At Shanghai’s World AI Conference in July, President Xi Jinping proclaimed that AI should be “an important driver for shared prosperity and common security.” Yet, the same leadership is now recognizing the social fallout. Selina Xu, a China technology analyst, observed a “major vibe shift” from Beijing, noting that after the success of the home‑grown AI model DeepSeek, authorities are issuing new guidelines that place greater emphasis on “AI for boosting employment and people‑first approaches.” Cheng Wanhui, an official in Beijing’s Zhongguancun high‑tech zone, added that the government is “paying close attention to the social issues AI brings, as well as potential ethical concerns,” and stressed that “the key is for everyone to shift their mindset, see AI as a tool, and learn how to apply it in their future work.”
Impact on White‑Collar Workers
AI’s displacement is not limited to blue‑collar gigs. Recent court rulings have awarded compensation to white‑collar employees laid off after their firms replaced them with algorithms. Tian Zemin, a Beijing‑based cinematographer with nearly two decades of experience, described his ordeal in a social‑media post: “I spent six gruelling years working my way up to become a cinematographer, only to be replaced by a piece of software.” He told the Guardian that his freelance rate has plummeted to 40 % of what it earned in 2019, leaving him feeling “a huge shock for the first time.” Many of his peers face similar fates as AI tools evolve from producing “shonky, weird looking avatars” to generating “convincing digital clones who have the range to carry a feature length film.” Tian lamented, “We have barely had time to react,” underscoring the breakneck pace of innovation.
Technological Progress in Creative Industries
The creative sector exemplifies how quickly AI capabilities are advancing. Early AI‑generated avatars were crude and easily identifiable as artificial. Today, sophisticated models can render lifelike digital performers capable of emoting, delivering lines, and sustaining narrative arcs throughout an entire movie. This leap has left many professionals scrambling to upskill or pivot, yet the window for adaptation is narrowing. As Tian Zemin put it, “Perhaps the only thing we can do is adapt as quickly as possible, and try to find the corner that AI still cannot replace—but that corner is getting smaller and smaller.” The sentiment captures a growing anxiety that even highly specialized, artistic roles may soon be susceptible to automation.
Comparative Outlook: China vs. US
Analysts argue that China’s centralized political system may give it an advantage in managing AI‑related job losses. Xu suggested that Beijing could, for example, “instruct companies to comply with hiring quotas” to absorb displaced workers. In contrast, the United States relies more on market‑driven adjustments, which can leave gaps in safety nets. Nevertheless, workers like Tian remain skeptical that top‑down directives will arrive swiftly enough to stave off personal hardship. He warned, “We could be replaced at any moment,” highlighting the urgency felt across industries despite optimistic policy signals.
Adaptation Strategies and Existential Concerns
In the face of relentless AI advancement, the prevailing advice for affected workers is to adapt rapidly and seek niches where machines still falter—whether that involves uniquely human creativity, complex interpersonal judgment, or tasks requiring nuanced physical dexterity. However, as the article notes, the “corner that AI still cannot replace” is steadily shrinking, intensifying the pressure on workers to continuously reinvent themselves. The tension between embracing AI as a productivity tool and fearing its encroachment on livelihoods defines the current debate in China’s evolving labour landscape.
Conclusion and Outlook
The Wuhan episode with Apollo Go serves as a microcosm of a larger national experiment: China is harnessing AI’s transformative potential while grappling with its disruptive side effects on employment. From taxi drivers seeing wages rebound after a robotaxi outage to white‑collar professionals watching their incomes collapse, the societal impact is uneven and rapidly evolving. While officials have begun to acknowledge the challenges and propose people‑first policies, the speed of technological change often outpaces policy responses. As workers across sectors strive to adapt, the central question remains whether China can balance innovation with inclusive prosperity before the “corner” of human‑only work disappears entirely.
https://www.theguardian.com/world/2026/jul/31/china-ai-jobs-workers-labour-market-technology