Young Chinese people use AI to start private companies due to job concerns

Applications of AI


Many young Chinese over the age of 35 fear age discrimination in the workplace, and are increasingly starting “one-man companies” in which most of the work is delegated to artificial intelligence.

Small start-ups are already in vogue in places like Silicon Valley, where rapidly advancing AI tools are seen as welcome teammates even as they threaten layoffs at incumbents.

In China, more young people are joining the model as cities pledge millions of dollars in funding and rent subsidies to such businesses. The Chinese government’s political goal is “technological independence.”

“Solo businesses are a product of the AI ​​era,” said Karen Dai, founder of Shanghai-based Solonest, which organizes weekend events for solo entrepreneurs.

Running a business on your own used to be very difficult, but the expanded range of tasks that AI can assist with has “lowered the barrier to entry,” she said.

On a Sunday in Shanghai, about 20 people in their 20s and 30s packed into a conference room for Dai’s 134th three-hour “exchange of ideas about going it alone.”

One participant, Wang Tianyi, is currently earning up to 40,000 yuan (S$7,500) a month by creating AI-generated commercials for businesses.

The 26-year-old, who left his job as a product manager at an internet company in 2025, predicts solo travel will become a “big trend.”

“They (private companies) have an efficiency advantage because of the technological capabilities brought to them by AI,” he told AFP.

On Chinese social media, people have been lamenting the so-called “35-year-old curse” for years, or widespread age discrimination in technology, government and other competitive fields.

“When you turn 35, there’s this invisible boundary,” says Dai, 38.

“People may face some challenges in the workplace. Companies may reassess who is suitable to stay.”

But after witnessing China’s decade of rapid economic growth, young people have a hunger for growth, said Dai, who also wrote the book One People Company.

“When you’re 30 or younger, you ask yourself, ‘What should I do to prepare when I reach that invisible line of 35?'” she said.

Wei Xin, 34, from Shanghai, knew that his job as a document examiner at a foreign consulting firm would be replaced by AI before it actually happened.

So she enrolled in Google’s Gemini course and dabbled in creating AI-generated digital versions of herself, before turning to creating social media content.

“I have some concerns about AI,” said Wei, who returned to China in 2025 after earning a degree in the United States.

“If you don’t use it or get close to it, you might be eliminated soon.”

Local governments in China are rolling out policies to support private companies using AI, using the initials “OPC”, which is a rare use of English in official policy.

In November, the eastern city of Suzhou pledged to train “more than 10,000 OPC talents” by 2028 and invest about 700 million yuan in the following areas: AI robotics, healthcare, and smart transportation.

In March, Chengdu Southwest also pledged to provide subsidies of up to 20,000 yuan to graduates if they set up AI-driven private companies.

Kyle Zhang, an expert on Chinese technology development and a fellow at Brookings University, said these measures are “a carrot to help these startups get off the ground and succeed.”

Sponsoring an OPC is a new and inexpensive way to address China’s high youth unemployment rate, where one in six 16- to 24-year-olds is unemployed.

“The cost for local governments to do this to OPC is very low,” Dr Chan said.

Wang, a former product manager, said many of his friends are choosing to work on independent projects rather than competing for corporate jobs.

But startups often struggle to turn a profit, he said, and “what’s important in the future is how you sell it.”

Young Chinese people are investing in backup plans, asking themselves, “Can I take advantage of the convenience of AI to explore what I want to do on my own?” Dai said.

“There’s a sense of control and creativity.” AFP



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