China urges caution on AI-driven job displacement as users top 700 million

China's government has issued a call for caution in replacing workers with AI, citing the risk of job losses, as generative AI users surpassed 700 million in the first half of 2026—over half the population. The statement signals a policy shift toward managing AI's labor-market impact, though specific measures remain unclear. This matters as China balances AI adoption with social stability.

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