As China enters the lunar year of the horse in 2026, the mood among young university graduates is grim, reflecting broader economic challenges despite official reports of steady 5% growth. While high-tech industries and exports have fared well, much of the economy struggles, with youth unemployment officially above 15%. Graduates face a saturated job market, with many unable to secure positions matching their qualifications, leading to a rise in gig economy roles such as delivery drivers. Popular social media phrases like “cry cry horse,” inspired by a sad-looking upside-down smile toy, and “the kill line,” a gaming term turned metaphor for precarious livelihoods, capture the widespread disillusionment and economic anxiety among China’s youth.
This economic stagnation challenges the social contract that underpinned the Communist Party’s legitimacy, which traded personal freedoms for economic advancement. Many young people are “lying flat,” abandoning ambitions and relying on parental support or low-paid gig work, while others seek government jobs or further study. The phenomenon of “neijuan” (involution) describes a vicious cycle where increased effort leads to diminishing returns and deflation, trapping workers in economic hardship. Despite some exceptions, such as the accidental success of the “cry cry horse” toy, China faces a difficult path ahead, with expectations that next year’s growth targets may be lowered amid persistent structural issues.
