At the very least, the Chinese government has made its official stance clear—though you could interpret this as a way of saying, “Don’t make me clean up your mess.” Companies will weigh which side entails higher costs and actively explore other avenues, and large corporations won’t dare to act brazenly.
If AI becomes very powerful and poses a high risk of replacing ordinary workers’ jobs, this approach will be more effective. For now, however, the market itself may still be able to handle the situation.
Regardless, at best it protects existing employees. A hiring freeze will still block new workers.