In recent years, China has found itself grappling with an economic paradox: a slowing economy paired with relentless pressure on its youth. The country, which once experienced rapid growth and promised prosperity to millions, is now facing challenges that have led to the rise of new, somewhat alarming social phenomena. One such phenomenon is the concept of “Neijuan,” a term that has rapidly gained traction in both academic and popular circles, especially among China’s younger generation.
The buzzword describes a sense of despair and exhaustion brought about by intense competition that offers little reward. But more than just a word, Neijuan represents the deep anxiety that runs through China’s workforce, especially its youth, as they navigate a society where the opportunities their parents enjoyed seem increasingly out of reach.
The term “Neijuan” literally translates to “involution,” a concept borrowed from sociology that was initially used to describe a society that can no longer progress despite endless effort. Applied to the Chinese context, it encapsulates the deep frustration felt by many who find themselves trapped in an endless cycle of hard work with no discernible benefits or progress.
For China’s youth, the phrase has come to symbolize the hopelessness of working harder without ever truly advancing. The question, however, remains: Why is China so concerned about the spread of Neijuan, and what does it reveal about the current state of the country’s economy and society?
At the heart of Neijuan is a sense of constant competition that leads to diminishing returns. The term highlights the reality faced by millions of Chinese young people who, despite their best efforts, see little improvement in their personal or professional lives.
The pressure to succeed is intense, and yet, it feels as though no matter how much one sacrifices, the rewards are not forthcoming. It’s a bitter pill to swallow for a generation that was promised the possibility of a better life than their parents. Instead, they find themselves caught in a hyper-competitive environment where job prospects are fewer, the cost of living continues to rise, and the social safety net feels increasingly fragile.
The Chinese government has long been concerned about the effects of Neijuan, not only because it reflects deep-seated dissatisfaction among the youth but also because it signals a broader economic and social issue. China’s economy, once a juggernaut of growth, is slowing down. The rapid industrialization and urbanization that fueled the country’s rise to global economic power have hit a plateau.
The days of easy growth are over, and China is now grappling with the consequences of a maturing economy. The rise of Neijuan is emblematic of this shift, as the relentless pressure to succeed, paired with fewer opportunities, creates a sense of frustration that has spilled over into the public discourse.
The roots of Neijuan can be traced to several factors. The first is the economic slowdown that China has experienced in recent years. Following decades of double-digit growth, the country’s economy has begun to cool, and with it, the expectations for future prosperity. Young people, in particular, feel the pinch. Youth unemployment has reached alarming levels, with the jobless rate for urban youth aged 16 to 24 hitting a record 21.3% in June 2023.
While the government has since adjusted its methodology for reporting unemployment statistics, the reality is clear: finding stable, well-paying jobs is more difficult than ever. For many, this means that the opportunities their parents had are simply not available to them.
In addition to the economic challenges, China’s rapidly changing society has contributed to the rise of Neijuan. The country’s one-child policy, which was in place for decades, has led to a shrinking and aging population.
This demographic shift has placed immense pressure on the younger generation to not only succeed professionally but to also care for their aging parents. This burden, combined with the intense competition for a limited number of high-status jobs, has made it difficult for many to find a path forward that offers both personal fulfillment and financial security.
The situation has been further exacerbated by China’s industrial policies, which have led to oversupply and fierce competition in sectors like technology, solar energy, and electric vehicles. In many industries, companies have resorted to price wars and overproduction in order to stay afloat, often at the cost of long-term profitability. In turn, workers are pushed to work longer hours, acquire more skills, and continuously prove their worth—all without the assurance that they will be rewarded for their efforts. This phenomenon, often referred to as “involutionary competition,” is what Neijuan describes: the constant pressure to do more without seeing the benefits.
Perhaps the most striking example of Neijuan in action is the viral story of a student from Tsinghua University, one of China’s most prestigious schools, who was filmed riding his bicycle while working on his laptop. The image of this “Tsinghua’s involuted king” quickly became a meme, symbolizing the absurd lengths to which people in China were going to prove their productivity in an environment where it seemed that hard work no longer led to success. For many, the image captured the essence of Neijuan: a futile attempt to stay ahead in a race where the prize was increasingly out of reach.
This sense of relentless competition and frustration has led to significant anxiety among China’s younger population. In many ways, Neijuan has become a reflection of their fears for the future. As China’s economy struggles to find new sources of growth, the sense of possibility that once existed has begun to fade. For young people who were raised with the expectation that hard work would lead to a better life, the current reality is disheartening. Many are left questioning whether the sacrifices they are making will ever pay off, or whether they are simply caught in an unending cycle of striving with no tangible rewards.
China’s leaders are acutely aware of the dangers posed by the rise of Neijuan. The government has repeatedly expressed concern over the impact of excessive competition on both the economy and society. In December 2023, at the annual Central Economic Work Conference, China’s top economic policymakers acknowledged the issue and pledged to “rectify ‘involutionary’ competition.” Premier Li Qiang, speaking at the World Economic Forum in Davos, warned of the dangers of “spiraling involution” in both China and the global economy. These statements signal that the government is increasingly worried about the potential long-term effects of Neijuan, not just on the economy but also on the social fabric of the country.
The government’s response to Neijuan has included several policy reforms aimed at reducing competition and fostering a more sustainable business environment. In particular, China is focusing on eliminating market fragmentation and local protectionism, which has made it difficult for businesses to compete fairly.
The government has also promised to crack down on “destructive competition,” where companies resort to price wars and overproduction rather than innovation. These efforts are part of a broader strategy to shift the focus of China’s economy away from the rapid, unsustainable growth of the past and toward more stable, long-term development in high-tech sectors such as solar energy, electric vehicles, and batteries.
Despite these efforts, Neijuan remains a significant challenge for China. The rapid pace of technological advancement and globalization has created intense competition, both domestically and internationally. Chinese companies face pressure not only from domestic rivals but also from foreign competitors, particularly in sectors like technology and manufacturing.
As China’s economy slows, the stakes are higher, and the margin for error is smaller. The fear is that this environment of intense, often self-defeating competition will continue to stifle innovation and leave many workers feeling exhausted and unfulfilled.
