CBN Perspective丨From “996” to forced clock-out, Chinese firms take aim at “neijuan”

Hello! Welcome to CBN Perspective. I’m Stephanie Li.

Imagine this: At 9 p.m. sharp, the lights dim at DJI’s Shenzhen headquarters, and employees are literally herded out by security guards; over at Midea, offices go dark by 6:20 p.m., with strict bans on after-hours meetings; and PowerPoints are getting the boot at MINISO, where reports must now fit on three pages max.

This isn’t a dystopian HR experiment—it’s China’s bold push against “neijuan”, which refers to excessive, cutthroat competition. Today, we’ll unpack why companies are trading overtime for efficiency, how policies are reshaping corporate culture, and what this tells us about the broader "neijuan epidemic" in Chinese society.

The poster children of this movement are tech and manufacturing titans. DJI, the world’s leading drone maker, now enforces a 9 p.m. shutdown, with employees joking about being “chased out” by reminders to “stop the rat-race”. Midea’s “18:20 rule” bans post-dinner desk returns, while Haier mandates double weekends—no sneaking into empty offices on Saturdays. And Trip.com has piloted hybrid work models, proving remote efficiency isn’t just a Western trend.

But why now?

China’s corporate world is used to slashing prices to oblivion, employees working “996 schedule” (that’s 9 a.m. to 9 p.m., 6 days a week), and everyone’s chasing the same shrinking slice of the pie. It’s like a never-ending game of musical chairs, but the music’s stuck on repeat.

Now China decides to put a stop to this self-defeating cycle of excessive competition in which companies are forced to invest ever greater resources without generating proportional returns.

Premier Li Qiang vowed to launch a “comprehensive crackdown on neijuan” during his work report to the National People’s Congress last Wednesday – the first time the premier has mentioned the concept in his agenda-setting annual address.

China’s leaders have begun to discuss the need to tackle “neijuan” with growing frequency in recent months as the country has come under increasing pressure from a string of Western nations over trade issues.

But this is the first time the term has been used in a government work report to the NPC. This follows 2024 Politburo calls to curb malicious competition.

Nevertheless, Beijing has been intensifying its efforts to curtail “neijuan.” Last July, the Politburo mentioned “neijuan” for the first time, stressing the need for industries to exercise self-discipline and prevent destructive “neijuan-style competition.”

A few months later, China’s top leaders reiterated this stance at the annual tone-setting Central Economic Work Conference. China’s market regulator last week also convened a meeting with seven major companies from the technology, solar and automotive industries to discuss how to stamp out “neijuan” in their fields.

He Xiaopeng, founder and CEO of electric vehicle maker Xpeng Motors, said that the price war in China’s EV market was starting to wane.

“This year, it’s no longer about price wars – it’s about intelligence,” He said on the sidelines of the just-concluded “two sessions” in Beijing. “Many competitors, along with the entire auto industry, are making smart features the new standard, pushing them to be more advanced. As a result, China’s smart EV market is shifting from competing on price to competing on quality, and now, on intelligence.”

On the employee level, Gen-Z is behind the revolt of becoming corporate animals. Young workers are rejecting what they call the “performative overtime”. As one Midea employee quipped: “Why fake productivity when AI can automate reports?”

“Neijuan” isn’t new in the Chinese cultural context. Historically, it stems from resource scarcity—think farmers over-cultivating tiny plots. Today, it’s turbocharged by hyper-competition that had led to a toxic corporate culture which once deemed the infamous “996 schedule” a “blessing.”

“It is a prisoner’s dilemma—no one gains, but everyone fears stopping first”, said Zheng Zhigang, professor at Renmin University’s School of Finance. As Chinese companies become more globalized, they are increasingly influenced by international industry policies, and are entering a period of strategic adjustment.

The move from "996" grind to mandatory off-hours policies signals a cultural revolution. Tech firms are redefining productivity—prioritizing outcomes over hours, automating repetitive tasks, and envisioning a future where meaningful work coexists with personal fulfillment.

When building new quality productive forces, companies realize that extending the working day does not improve efficiency. Instead, boosting technological capabilities and improving the working experience are key to enhancing competitiveness.

Only by strengthening the scientific and technological content of products, and at the same time allowing employees to enjoy their work, is it possible to gain a competitive edge.

In mature, market-oriented industries, competition is fierce and companies should focus on organizational management, investing resources in improving core competitiveness, and establishing effective performance evaluation systems to motivate employees and foster a healthy corporate culture.

But challenges loom. At some firms, forced clock-outs may just mean to shift work to home offices. And for managers who are cling to “face time = loyalty” mindsets, turn to MINISO’s “3-page report rule” that slashes pointless paperwork and long meetings.

Yet, early wins are promising: DJI’s R&D efficiency jumped 15-18% post-policy, while Midea saw patent applications up by 18%.

Let’s zoom out. In Singapore—a majority-Chinese society—the term kiasu (Hokkien for “fear of losing out”) mirrors China’s “neijuan.” But here’s the twist: Singaporeans work smarter, not harder. Their government safeguards affordable housing to reduce survival anxiety, while employees flatly reject 996, as an Alibaba manager in cultural shock when their Singapore team killed the overtime culture.

Yet, Chinese entrepreneurs in Singapore often clash with this chill ethos. As writer Ban Ni observed, successful firms thrive by respecting local culture, instead of exporting “neijuan.” It’s a lesson for Chinese firms: efficiency doesn’t require exhaustion.

So is China’s “anti-neijuan” movement a fleeting trend or a cultural reset? The answer lies in balancing policy muscle with mindset shifts. As DJI’s employees now joke: “The best innovation isn’t a drone—it’s leaving work at 9 p.m.”

Executive Editor: Sonia YU

Editor: LI Yanxia

Host: Stephanie LI

Writer: Stephanie LI

Sound Editor: Stephanie LI

Graphic Designer: ZHENG Wenjing, LIAO Yuanni

Produced by 21st Century Business Herald Dept. of Overseas News.

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