How AI is reshaping China’s universities

In September 2026, China’s government unveiled an ambitious 10-year plan to reform its universities. Driving the change is an increasingly challenging job market for the country’s close to 13 million college graduates, who are facing the twin disruptions of AI and a slowing economy. Under the plan, dozens of graduate programmes are being disbanded, while universities themselves will be categorised and tasked with either pursuing research, applications or skills development.

A combination of factors, some not too dissimilar to the current challenges in India’s own job market, has left policymakers grappling with a tepid job market and a vast number of graduates facing dim job prospects. Top of the list is a mismatch in skills between graduates and what companies are seeking. Depressed economic sentiment has also led companies to cut back on hiring, with the prolonged structural slowdown in the real estate market dragging down growth. AI is the third disruptive force, changing rapidly how the marketplace views and values skills.