Forex – China’s People’s Bank (PBOC) policy advisor Huang Yiping said China must balance the need to preserve employment and promote technology innovation to avert potential social and political risks.
Speaking on the Bund Hill in Shanghai, Huang Yiping said that staff were being displaced in departments where technology was advancing rapidly, and many of them may have difficulty finding new jobs elsewhere.
“If they can’t find new jobs, it could create a huge social and political problem,” Huang said. “We need to balance innovation with the employment problem, as some technological innovations will replace workers.”
Amid slack domestic demand and a housing crisis, China is pouring financial resources into technological innovation and advanced manufacturing to help transform the economy as part of its bid to develop “new productive forces.”
Authorities should carefully manage this process, provide retraining programs for laid-off workers and strengthen social safety nets, Huang said.
