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   China's AI safety net
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   Plus: Spring isn't saving the U.S. housing market.
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          Tuesday, May 12, 2026
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          China is trying to stop AI from becoming a layoff machine
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          Chinese courts have ruled that companies cannot terminate employees simply to replace them with AI systems, establishing a legal principle that puts the cost of
technological transformation on employers rather than workers.
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          The most recent ruling came from the Hangzhou Intermediate People's Court, which upheld a finding that a tech firm had illegally fired a quality assurance worker identified only as Zhou after he refused to accept a demotion triggered by AI automation.
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          At 25,000 yuan ($3,640) a month, his job centered on verifying whether large language models were producing accurate results. Once the company concluded that its AI systems had made 
Zhou's position redundant, it moved to slot him into a lower-level role paying 15,000 yuan, stripping away 40 percent of his income. Zhou rejected the offer, and his employer responded by ending his contract. Every venue that heard the dispute ruled against the company and awarded Zhou compensation.
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          The Hangzhou court suggested that if companies need to restructure because of AI, they should focus on retraining employees for jobs that require human judgment. Any new role offered should also come with fair 
pay.
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           Should companies protect workers displaced by AI?
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                          <td align="center" bgcolor="#105C8E" style="text-align:center;-webkit-border-radius:6px;-moz-border-radius:6px;border-radius:6px;font-size:16px;font-family:Arial,Helvetica,sans-serif">
                           <!--[if 
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                            Yes. Mass layoffs would upend the economy
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                           <!--<![endif]-->
                           <!--[if mso]><a href="https://www.ne16.com/t/10720275/222404108/9760591/1/1009235/?abb9e380=NGYzZmQyODYtMmZhOS00YzdjLWFkYzktMzQyOGNhZmI3ZDBl&f5d63f87=REIlMjAwNS0xMiUyMCUyOFVTJTI5&x=b353cba6" 
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                          <td align="center" bgcolor="#105C8E" style="text-align:center;-webkit-border-radius:6px;-moz-border-radius:6px;border-radius:6px;font-size:16px;font-family:Arial,Helvetica,sans-serif">
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                            No. AI is all about making things efficient
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                           <!--[if mso]><a href="https://www.ne16.com/t/10720275/222404108/9760592/1/1009235/?abb9e380=NGYzZmQyODYtMmZhOS00YzdjLWFkYzktMzQyOGNhZmI3ZDBl&f5d63f87=REIlMjAwNS0xMiUyMCUyOFVTJTI5&x=ed35fd18" 
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                Trump is bringing more than a dozen top executives to China.
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              Elon Musk and Tim Cook headline the cohort reportedly invited to President Donald Trump's summit with Chinese President Xi 
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                Automakers urge Trump to keep Chinese cars out of the U.S.
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              GM, Ford, and Stellantis are backing a bill by lawmakers to ban Chinese manufacturers from setting up factories on American soil. Opponents say Chinese automakers can draw on state-backed resources to undercut U.S. competitors.
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               <a data-linktext="OpenAI offers Europe access to its cybersecurity AI model." data-linktype="Normal" style="color:#105C8E" target="_blank">
                OpenAI offers Europe access to its cybersecurity AI model.
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