In recent years, the term \"neijuan\" has gained traction on Chinese social media, capturing the essence of relentless competition that burdens individuals and institutions alike. Often compared to an \"arms race,\" neijuan describes a scenario where people strive harder just to maintain their current standing, leading to exhaustion and diminishing returns.
This phenomenon is prevalent in China's education system, where students from primary to high school levels feel immense pressure to excel in extracurricular activities for admission to elite institutions. The impact extends beyond education, affecting white-collar workers who log excessive overtime, manufacturers engaged in cutthroat pricing, and local governments competing for the most attractive enterprise policies.
Responding to the growing concerns, Chinese policymakers have begun taking steps to mitigate neijuan. In late 2023, central officials emphasized the need to prevent \"rat race-style irrational competition\" during a Communist Party of China (CPC) leadership meeting. Following the Central Economic Work Conference in Beijing, the CPC signaled a more proactive stance, aiming to regulate the behaviors of both enterprises and local governments.
Han Wenxiu, executive deputy director of the Office of the Central Committee for Financial and Economic Affairs, highlighted the challenges faced by emerging industries like new energy vehicles and solar panels. He stressed the importance of addressing irrational competition to ensure healthy industry development and maintain China's global competitiveness.
Experts suggest that leveraging market-oriented and legal strategies will be crucial in combating neijuan. Improving standards in technology, environmental protection, safety, and energy consumption are among the proposed measures. Additionally, Liu Yuanchun, dean of Shanghai University of Finance and Economics, pointed out that local governments' competition to attract investment will also be targeted to foster a more sustainable economic environment.
As China continues to navigate the complexities of neijuan, these policy shifts aim to create a more balanced and equitable landscape, reducing undue pressures and promoting long-term growth across various sectors.
Reference(s):
Confronting 'neijuan': China addresses unhealthy competition
cgtn.com
