Beijing’s ambitious push to integrate artificial intelligence across various sectors, fueled by the launch of DeepSeek, is generating both excitement and apprehension. Premier Li Qiang‘s call to vigorously promote technology consumption and unlock the potential of AI terminal products on February 20th underscores the government’s commitment. Though, this rapid adoption is raising concerns about potential job displacement and the broader impact on China’s industrial structure. The Communist Party of China (CCP) has been strategically planning for AI growth since 2017, and last year, the “AI+” action was incorporated into the government report, solidifying its status as a key priority for the year.

Despite the domestic enthusiasm, DeepSeek faces international headwinds. Following its launch,the AI platform has encountered negative press and growing scrutiny. Citing security concerns,several countries and organizations have restricted or banned its use. On February 17th, Korea became the second nation, after Italy, to fully ban downloading DeepSeek apps. Moreover, agencies within the U.S. Navy, the Texas government, the taiwan government, and the Australian government have also prohibited the use of DeepSeek.

The “AI Leap Forward” and its Impact on Employment

the scale of China’s AI ambitions is significant. Data indicates that as of June 2024, over 4,500 artificial intelligence companies where operating within the country.By December 31, 2024, the Cyberspace Administration of China had registered 302 generative artificial intelligence services, boasting a user base of 249 million. These AI applications are being deployed across diverse fields, including creative endeavors, buisness operations, scientific research, and industrial production.

Autonomous writer Zhuge Mingyang expressed concerns about the CCP’s approach, stating that in its competition with the United States, the CCP’s crazy and reckless approach will definitely bring huge trouble to itself. He further elaborated on the potential consequences of widespread AI adoption, noting that now, taking advantage of the DeepSeek momentum, the CCP wants to popularize AI to almost all fields and implement the “AI Great Leap Forward”, which will inevitably have a huge impact and impact on China’s industrial structure and employment market.

Lin Zongnan, a professor in the Department of Electrical Engineering at National Taiwan University, views the timing of DeepSeek’s release as strategic, coinciding with the return of the Trump administration. He stated, This is on the surface to promote a private enterprise, but actually it is indeed praising the CCP (Communist Party of China) itself. DeepSeek is the Huawei version of AI, and behind it is the Chinese (CCP) government.

The potential economic consequences of AI adoption have also been highlighted by economists. Peng Wensheng, chief economist and head of the research department of CICC, wrote in July of the previous year that AI could boost China’s annualized growth rate by an additional 0.8 percentage points over the next decade. However, he cautioned that it may exacerbate the income gap and cause insufficient total demand, and the growth of humanoid robots will lead to technical unemployment.

Robots in Government and AI Doctors: A Glimpse into the future?

Recent reports suggest that the integration of AI is already underway in various sectors.Social media users have reported the deployment of over 70 robots in Shenzhen’s government affairs hall, handling more than 240 services. This development raises the possibility of fully automated government offices in the near future.

The healthcare industry is also experiencing AI integration. Mainland media reports indicate that hospitals in Guangxi,Guangdong,and other regions have begun implementing DeepSeek’s local applications. On February 17th, the Internet Hospital of Guangdong Maternal and Child Health Hospital launched DeepSeek clever consultation. This AI-powered system,known as “Doctor Xiaoyue,” can provide consultations for common symptoms,offer tiered diagnosis and treatment advice,and alleviate pressure on outpatient services. Doctor Xiaoyue utilizes a one consultation model + N triage intelligent body small models approach to create a comprehensive AI platform covering diagnosis, auxiliary diagnosis, and health management, aiming to enhance healthcare services for women and children through human-machine collaboration.

These advancements have led some to speculate about the future of the medical profession,with some suggesting that doctors could be the next profession to face significant disruption.

Beyond government and healthcare, companies in the automotive, telecommunications, and securities industries have announced plans to incorporate DeepSeek into their operations. Some companies have already begun using AI to automate tasks and reduce their workforce.

A leaked screenshot from an internal group chat at Shanghai Shangmei Cosmetics Co., Ltd. revealed that chairman and CEO lu Yixiong instructed departments to implement layoffs, retaining only employees proficient in AI. The customer service department faced a potential staff reduction of up to 95%, while the content innovation department could see an 80% reduction, and the legal department a 50% reduction.

Unemployment Concerns and Vulnerable Occupations

Against the backdrop of a slowing Chinese economy, the widespread adoption of AI is expected to exacerbate existing unemployment challenges. Experts believe that several occupations are notably vulnerable to automation, including customer service representatives, data entry workers, warehouse and logistics personnel, manufacturing workers, financial analysts, medical diagnosticians, legal assistants and lawyers, marketing and advertising operators, translators and interpreters, and taxi and truck drivers.

Lin Zongnan emphasized that the government’s push for AI adoption across all industries will inevitably lead to job losses. He noted that individuals lacking skills relevant to emerging industries,especially those in conventional customer service roles,will face significant challenges in avoiding displacement.

Zeng Yishuo, an associate researcher at the Institute of Cybersecurity of the Taiwan Institute of Defense Security, echoed these concerns, stating that the CCP’s extensive use of AI will inevitably lead to structural unemployment. He stressed the importance of a safe placement or receive professional training [to] adapt to the relevant work patterns and skills required after the arrival of the AI ​​era.

Shi shan, a senior media person, drew parallels to the rise of e-commerce platforms like alibaba, which led to the closure of many traditional brick-and-mortar stores, particularly in smaller towns and counties. He warned that further AI integration in e-commerce could have a significant impact on China’s economic structure and create various societal problems.

DeepSeek’s uncertain Future

Zeng Yishuo believes that the CCP’s strong promotion of AI stems from its strategic importance. Because AI affects the entire strategic layout of the CCP, it cannot fall behind, so it vigorously promotes it.

Lin Zongnan highlighted the importance of data, computing power, and models in AI development. He suggested that the CCP’s push for AI adoption across industries aims to master the data of different industries, form advantages, and make up for the shortcomings of their computing power.

However, deepseek’s technological origins have come under scrutiny, with allegations of plagiarism from OpenAI in the United States. Moreover, security concerns have led to bans in several Western countries. The United States’ strict export controls on high-end chips also pose a challenge to DeepSeek’s development.

Akio Yaita, CEO of the Indo-Pacific Strategic think Tank, argued that the lack of ideological and academic freedom in China hinders genuine innovation. He stated that a dictatorial country like the CCP does not have ideological and academic freedom, so it is tough to innovate in the field of cutting-edge technology, mostly fake and plagiarize the achievements of Western countries such as the United States.

Yaita also expressed skepticism about DeepSeek’s capabilities and trustworthiness. He concluded that from a geopolitical outlook, the conflict between the United States and China has become structural antagonism and is becoming increasingly fierce, and the United States imposes strict restrictions on Chinese high-tech products. Affected by it, artificial intelligence involving personal privacy, state secrets and other artificial intelligence shoudl have extremely limited living space.