Chinese courts rule that replacing a worker with AI is not grounds for firing
On April 28, 2026, the Hangzhou Intermediate People's Court upheld a ruling that a technology company had illegally dismissed a quality assurance supervisor surnamed Zhou. The company had moved him to a lower position and cut his monthly pay from 25,000 to 15,000 yuan, then fired him when he refused. The court held that adopting AI is a strategic business decision rather than an unforeseeable objective major change, so it does not meet Article 40 of China's Labour Contract Law. A Beijing case decided December 26, 2025 reached the same conclusion. These are court precedents, not national legislation.