China Aims to Curb 'Involutionary' Competition, Promotes Paid Leave to Boost Consumption

A political adviser has called on the Chinese government to intervene and curb "involutionary" competition, arguing that the pervasive culture of overtime is not only a labor rights issue but a drag on the nation's economic vitality.

Lu Ming, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) and a professor at Shanghai Jiao Tong University's Antai College of Economics and Management, urged authorities to curb excessive, unproductive overtime that has become normalized in workplaces, Jiefang Daily reported today.

"Overtime has turned into a social norm, leaving people with no time to spend money," Lu said. "This is not only a matter of workers' rights and interests but also bears on the intrinsic drivers of economic development."

His proposal was put forward as the annual session of China's top legislature opened in Beijing this morning.

Premier Li Qiang delivered a government work report on behalf of the State Council, outlining key policy priorities for 2026 that align with efforts to ease overwork and boost consumption.

According to the report, China will support eligible regions to introduce spring and autumn vacations for primary and secondary school students, while fully implementing a paid leave system to allow employees to take holidays at off-peak times.

In a direct response to "involution" concerns, the government vowed to strengthen anti-monopoly and anti-unfair competition enforcement, with rigid constraints on fair-market competition reviews. It will use a mix of capacity regulation, standard-setting, price supervision and quality inspections to crack down on "involutionary" competition and foster a healthy market environment.

Authorities will also expand pilot reforms for the market-based allocation of production factors to include more qualified regions, the report added.