China Bets on AI to Replace Its Fading Workforce

China’s era of explosive growth, fueled by a vast and young workforce, is ending. As the country plans its next five-year economic strategy, leaders face a new reality. The old tools of infrastructure projects and property market boosts cannot fix this core problem: a shrinking population and rising global competition. The central question is now about productivity, not just speed. How can the economy advance with fewer workers? Many experts point to artificial intelligence as a critical part of the solution. Specifically, they highlight the potential of "AI agents." These are advanced systems that can perform complex tasks, analyze data, and make decisions with minimal human input. If widely deployed, AI agents could automate roles in factories, offices, and customer service. This would create a new "intelligence dividend" to replace the fading "demographic dividend." The goal is for AI to boost output per worker, driving the next phase of China's economic development.