China's Youth Embrace Frugality Amid Economic Challenges

Sun Nov 30 2025 22:59:32 GMT+0200 (Eastern European Standard Time)

In the wake of rising youth unemployment and economic uncertainty, young people in China are adopting a minimalist lifestyle, sharing tips on social media to survive on less and save money, while the government struggles to encourage consumer spending.

With youth unemployment nearing 20%, many young Chinese are fearful of their economic future, leading them to prioritize saving over spending. Influencers promote frugality through social media, sharing budgeting tips and cost-effective living strategies. The Chinese government seeks to boost domestic consumption, but cultural habits and economic instability complicate these efforts.

China is facing a number of economic challenges and its government wants the next generation of consumers to start spending more for the good of all, but it is not having much luck convincing them to do so.

Officials say insufficient domestic consumption across much of society is dragging on growth, but recent graduates have more reasons than most to be cautious.

Youth unemployment has been hovering at just under 20% for some time, those who have jobs fear they could lose them, and the ongoing property crisis can make the prospect of home ownership seem unreachable, especially in big cities.

This uncertainty is encouraging many of China's youth to instead embrace frugality, and social media has been flooded with tips on how people can survive on small amounts of money.

My work is dedicated to a minimalist way of life, one full-time influencer tells the BBC.

Videos by the 24-year-old, who goes by the online name Zhang Small Grain of Rice, feature content like her using a bar of ordinary soap for all her personal cleaning requirements, rather than expensive skin cleansing products.

She can also be seen walking around shopping areas and showing off various bags and items of clothing which she says are good value because they'll last longer.

Companies pay her to feature their goods to her 97,000 followers on the Xiaohongshu site.

I hope more people will understand consumption traps so they can save. This will reduce their stress and relax them, she said.

Others focus on budget eating.

A 29-year-old using the name Little Grass Floating In Beijing posts videos of himself preparing basic dishes. He says he can have two meals for a little over $1 (76p).

I am just an ordinary person from the countryside. I have neither a good educational background nor a network of influential contacts, so I must work hard for a better life, he tells his followers.

He works for an online sales firm and claims his extremely modest lifestyle has enabled him to save more than $180,000 over 6 years.

Some have asked him online if he would expect his future wife and children to live the same way and what the end goal is. His response: I don't know.

China has developed a reputation for being an unstoppable economy, able to ride out the turmoil of the pandemic and US President Donald Trump's trade war. However, analysts argue that significant long-term challenges lie ahead if the nation does not boost domestic spending.

While the US has a problem with people racking up credit card debt, in China it's the opposite challenge. People are already inclined to save rather than spend, and this tendency only increases amid perceptions of tough times ahead.

The Chinese government has promised for years to increase household consumption, yet it still only accounts for around 39% of gross domestic product (GDP), far below the 60% found in most developed countries.

A troubling sentiment among today's youth is their pessimism compared to the more optimistic views prevalent in the 1990s and early 2000s.

Right now, making money is more important to me. I actually need to expand my income sources and cut my costs, a young woman in central Beijing tells the BBC.

Like many, her salary has been cut and job security remains uncertain.

This climate of high youth unemployment not only fosters insecurity but also allows employers to impose wage cuts, forcing workers to either accept lower pay or contend with a fiercely competitive job market.

A young man in his 20s reports low-level jobs are available but decent work in one's area of expertise is scarce.

Some of my friends are unemployed, still living at home and looking for a job, he comments.

Graduates with degrees in fields like financial services and product sales are struggling to navigate the rough waters of the economy, hoping for improvement.

Concerns also arise over the broader transition China is making from mass production to a high-tech economy, which inherently demands fewer workers.

Economist George Magnus asserts this shift highlights a critical synchronization issue between graduates' qualifications and the labor market demand, evidenced by many degree holders taking jobs as delivery drivers.

This skill mismatch is exacerbated by technology's rising prominence, where robotics and AI adoption reduces the need for labor.

Helena Lofgren from the Swedish Institute of International Affairs underscores that China's reliance on investment-driven and export-oriented growth, particularly amid geopolitical uncertainty, is unsustainable.

People save more than they consume, and you need consumption to make up a bigger share of the economy than it's doing today in China, she asserts.

Ultimately, confidence needs to be fostered within the consumer base, perhaps through enhancements such as a social safety net or higher minimum wages, to encourage spending and combat potential deflation.

The influencer Zhang Small Grain of Rice believes this caution towards spending is rooted deep within Chinese culture, noting, For Chinese people to be economical is in their bones.