Chinese corporations have begun to improve the long working hours culture represented by the so-called '996' (working from 9 a.m. to 9 p.m., 6 days a week). As the Chinese government asks them to address inefficient 'internal competition,' corporations that already needed management efficiency have started to eliminate overtime. While there are voices welcoming the separation of work and life becoming a reality, there are also complaints that, given the workload remains the same, it is essentially no different from a 'wage cut.'
According to reports from Chinese media outlets such as the China Surface News on the 11th, the world's largest drone corporation, DJI, has been implementing a 'no overtime' policy since the 27th of last month. Accordingly, employees must leave the office after 9 p.m. Starting January 1 of this year, DJI eliminated transportation expenses paid for overtime and closed down facilities such as the gym, swimming pool, and badminton court, while also reducing team expenses, in order to foster an early leaving environment. Nevertheless, as working late did not reduce significantly, the company decided to close its doors after a certain hour.
Such movements are emerging in other Chinese corporations as well. Reports indicate that on the 10th, Chinese appliance manufacturer Midea began enforcing a mandatory leaving policy at 6:20 p.m. for office workers. Midea has also initiated the simplification of work methods this year, implementing a 'strict prohibition on meetings and formal overtime after hours,' and has taken a step further with this policy. Another appliance manufacturer, Haier, mandated 'two days of rest on weekends' starting last month and decided to allow a maximum of 3 hours of overtime during the week.
China's long working hours practice has been a driving force behind rapid growth. The so-called '996' culture, working 12 hours a day, 6 days a week from 9 a.m. to 9 p.m., has been a standard for a long time. This practice is particularly prominent in large corporations and the internet industry. In 2021, Jack Ma, the founder of Alibaba, one of China's largest e-commerce corporations, stated, 'Being able to work 996 is a great blessing' and asked, 'If you don't do 996 when you're young, when will you?' An individual in the Chinese internet industry shared, 'I go to work between 8 and 9 a.m., but there is no set quitting time,' adding, 'Even if I want to leave at 6 p.m., meetings start in the evening, so I have to stay.' Another person in the telecommunications industry reported, 'If I want to take a break on the weekend, I have to go through a separate approval process.'
The recent discussions during the two sessions (National People's Congress and Chinese People's Political Consultative Conference) are cited as reasons for Chinese corporations' efforts to eliminate overtime. According to reports from the Phoenix News, the work report from the National People's Congress included, for the first time, a call to comprehensively improve 'internal competition.' The Phoenix News noted, 'The meaning of 'internal competition,' including chaotic expansion of production capacity, price wars, and zero-sum games, is relatively broad, but from a micro perspective, excessively long working hours and hidden overtime are issues that workers feel more acutely.' A proposal also emerged at the Chinese People's Political Consultative Conference, calling for the legal clarification of the boundaries between work and life.
Some analyses suggest that the mature Chinese corporations are seeking management efficiency. Competition through long working hours is deemed unsustainable, and the associated expenses are substantial. The elimination of transportation costs associated with overtime and the closure of convenience facilities by DJI exemplify this. Haier decided to close the in-company cafeteria while abolishing weekend work. The Phoenix News reported, 'The measures taken by large corporations against 'internal competition' aim not only to guarantee workers' right to rest but also to reduce office expenses through management optimization,' adding, 'Many corporations are recognizing that innovation capability and market competitiveness do not come from offices that are lit all night, but rather from scientific and human-centered management.'
However, reactions from workers regarding these measures by corporations are mixed. Initially, there is a welcoming mood, as long working hours are seen as hindering 'the quality of life' and promoting inefficient competition. There are hopes that the prohibition of overtime will be implemented not only in large corporations but also in small businesses. Nevertheless, there are also complaints that it is essentially a 'wage cut.' Even if working hours are reduced, the workload remains the same, meaning that previously received overtime pay would simply disappear. A worker residing in Beijing remarked, 'The location for working late just changes from the office to home.'