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Sarajevo Times > Blog > WORLD NEWS > What is Neijuan, and why is China worried about it?
WORLD NEWS

What is Neijuan, and why is China worried about it?

Published December 24, 2024
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China uses a single word to encapsulate its slowing economic growth, declining birth rate, weakening social security system, and increasing global isolation.

Meanwhile, tangping (literally “lying flat”) describes young people rejecting the high-pressure demands of the economy, while runxue (“philosophy of escape”) reflects the growing desire to emigrate. Another term, neiyuan, or “involution,” represents a sense of societal and personal stagnation—a regression where efforts no longer yield progress.

What is Neiyuan?

Neiyuan is a sociological term describing a society or individual unable to evolve despite substantial effort. In China, it captures the frustration over diminishing economic returns. Literally translating to “rolling inward,” the term reflects a feeling of futility, particularly among millennials (born in the 1980s and 1990s) and Gen Z (born between 1995 and 2012). These generations perceive fewer opportunities compared to their parents, with hard work no longer guaranteeing success.

Is Neiyuan a Concern?

The issue of neiyuan has sparked national concern, prompting Chinese political leaders to call for increased public awareness. At the recent Central Economic Work Conference, policymakers pledged to address “involutional” competition. Premier Li Keqiang also acknowledged at the World Economic Forum that this “spiral of involution” is a global economic issue.

Who is Affected?

Millennials and Gen Z are most impacted, with youth unemployment reaching 21.3% in June 2023—a record high. Although the government revised its data collection methods, the latest figures still show urban unemployment for 16- to 24-year-olds at 17.1%. The problem is also prevalent in industries such as high-tech sectors (e.g., solar energy, electric vehicles, and batteries), which are part of China’s push for “new quality productive forces.”

What Causes Neiyuan?

Although the term has existed in academic circles for decades, it gained online traction in 2020 after a Tsinghua University student was photographed riding a bike while working on a laptop. Dubbed the “Tsinghua Involution King,” the image became a viral meme, especially in competitive industries like tech.

The issue is exacerbated by China’s highly educated workforce struggling to secure well-paying jobs. This challenge intensified with the 2021 “double cut” policy, which banned for-profit tutoring businesses. This policy aimed to reduce academic pressure but resulted in 10 million job losses in the tutoring sector, according to the Guardian.

Conclusion

Neiyuan has become a defining term for the frustrations of a generation grappling with an increasingly competitive and constrained economic environment. Addressing its root causes remains a major challenge for policymakers in China.

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