Hangzhou, the city that gave birth to tech giant Alibaba and the DeepSeek model, and a showcase of China’s ambition in artificial intelligence (AI), has issued a legal warning regarding the labor limits of that very same technology. The Intermediate People’s Court of this eastern Chinese city has ruled illegal the dismissal of an employee whom his company attempted to replace with AI after demoting him and cutting his salary by 40%. Released on the eve of International Labor Day as part of a series of landmark cases concerning the protection of labor rights in the industry, the ruling draws a red line in a country determined to lead this new technological revolution, but increasingly vigilant to ensure that its costs do not erode social stability.

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