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Zhou Xin

It may seem far-fetched to suggest that China should consider implementing a universal basic income at this time, as authorities appear to be unenthusiastic about the idea. In the past, Chinese officials have rejected proposals to distribute cash to households, even when many families were clearly in need of support.
But while the term universal basic income has yet to appear in any official Chinese policy documents, it may become less foreign in the coming years because of the increasing replacement of entry-level jobs by machines.
Advances in technologies such as artificial intelligence (AI) and automation are expected to render many traditional labour roles obsolete.
For example, the demand for human translators may diminish as machine translation improves, while manual labour in sorting goods on assembly lines is also on the decline. In fact, many leading Chinese manufacturers are developing “dark factories” to reduce reliance on human labour.
While new technologies will create new job opportunities, these roles are often unsuitable for workers displaced from traditional sectors. The pace at which old jobs are eliminated also outstrips the creation of new ones, which could lead to significant structural unemployment.

If driverless taxis become the norm, millions of people could find themselves at risk of losing their jobs. And it is safe to say not many of them can transition to roles in new demand, such as data scientists.
China must establish frameworks to manage the social consequences of AI, and universal basic income could be part of the solution.
According to China’s official ideology, the ultimate goal is to create a society where the fruits of labour are shared among all citizens. In this context, universal basic income could serve as a stepping stone toward a vision of communism.
While China’s manufacturing capacity is formidable, to the point where it is even raising concerns abroad, its share of global consumption remains relatively low. The country must explore ways to rebalance production and consumption.
One conceptual barrier to distributing cash to the Chinese populace is the fear of fostering laziness and an over-reliance on “excessive welfare”.
However, these concerns are largely unfounded, as universal basic income is designed to cover basic living expenses. There are still plenty of opportunities for ambitious individuals to pursue higher incomes for improved quality of life.
In terms of feasibility, China’s fiscal resources are sufficient to support a nationwide universal basic income system. China’s total fiscal revenues reached 22 trillion yuan (US$3 trillion) last year, amounting to about 16,000 yuan per person – not counting other government income sources.

Even if half of these funds were allocated to universal basic income, the government’s remaining fiscal resources would still be substantial.
Over the past two decades, the country’s fiscal revenues have increased nearly tenfold, and authorities have spent lavishly on infrastructure and urban development. Some of these resources could be reallocated directly to its citizens.
It is important to note that China’s welfare system, including pensions and healthcare, is designed to benefit specific groups more than others, exacerbating economic disparities and undermining the push for “common prosperity”. A universal basic income, in contrast, could help bridge these gaps.
If China chooses to implement universal basic income in the future, progress could be rapid. For a long time, the country has viewed its large population as a burden on economic and social development, and the ideal citizen is still being defined as “an industrious producer” willing to “swallow bitterness” – in other words, to endure hardship.
However, there are signs these perceptions are evolving. China is reportedly considering nationwide subsidies for newborns. A modern citizen is now expected to be “a contemporary consumer” who does not shy away from embracing personal enjoyment.
In short, given China’s aggressive adoption of AI and automation, alongside its strategic goal of balancing production and consumption, the concept of universal basic income is likely to become a key topic in Beijing’s policy discussions going forward.


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While the term ‘universal basic income’ has yet to appear in any official Chinese policy documents, the idea may soon become less foreign


While the term ‘universal basic income’ has yet to appear in any official Chinese policy documents, the idea may soon become less foreign.


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As AI replaces workers, China could consider universal basic income

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}While the term ‘universal basic income’ has yet to appear in any official Chinese policy documents, the idea may soon become less foreign

While the term ‘universal basic income’ has yet to appear in any official Chinese policy documents, the idea may soon become less foreign