2026 Table of Contents Chinese Company Culture is Shifting1.03 Why Chinese Brands Are ThrivingDomestically2.08 The States Relationship With Domestic Companies3.13 The ImpactInside and Outside of China4.16 About Daxue Consulting5.21 Chinese CompanyCulture is Shifting The management paradigm in China is being fundamentally reshaped China’s workplace, once defined by an extreme culture of overwork known as “996” (9 am to 9 pm, 6 days a week), has underwentaprofound shift. This “involution” (neijuan,内卷), a state of intense, often self-destructive competition, has prompted a major governmentcrackdown. The result is a new management landscape where work-life balance is being enforced, moving the sector away from its high-pressure past. Balance 2024 Moderation ofexcessive overtime Curb内卷 •DJI enforces 9pm lights-out•Midea sets 6:20pm clock-off 2019 Illegal 996 内卷 Legal baseline onhours/overtimereaffirmed Backlash 996/007 Involution(Neijuan)Overwork wasseen as anexcessive,zero-sumcompetition Debate over 996practicesDevelopers in ICUand welfare issueswere highlighted •≤44 hours/weekstandard•≤36 hoursovertime/month Hypergrowth erain techSpeed & output >process What more balanced management means for Chinese companies in 2026? As the term 996 hits the US’s Silicon Valley, this form of hustle culture is on its way out in China. Work-life balance will become a symbolof top tech companies, attracting even more qualified talent.But the question remains, will these company policies be enforced in aculture that values grit and perseverance? Productivity drivers Productivity inhibitors Investment in automation:Having less employee workhours incentivizes companies to dig deeper intoautomation. Less time spent working:if properly enforced, would cutworkdaysto 8hours a day, 5 days a week, meaning many employees who wereconsistentlyworkingovertimewouldnow work less. Bureaucracy & compliance:time spent ensuring that company policyon overtime is properly recorded and enforced. Which could alsocontribute to time wasted finding loopholes Value of output > hours logged:Force a reduction in “face-time” or staying late just to be seen. Attracting top talent:Companies with better work-life-balance will attract top talent. Chinese companies enforcing work-life balance Changed 996 to 1075, meaning workhours are 10AM-7PM, 5 days a week Max 3 hoursovertime a week Allows “Unhappydays” leave 6:20PM clock-off ByteDance implementsOKRstopower hyper-growth OKRs replace rigid annual planning with agile, company-wide execution. By translating vision into measurable action, they enablerapidpivots essential for success in fast-moving markets like China. Key results Objective Quantitative, measurable outcomesThe“How"–How will we knowwe're getting there? Qualitative, inspirational goalThe"Where"–Where do wewant to go? while KPIs remain the same over time and encourage status-quo.This management style allows massive Chinese companies to remainagile, especially as they go global. •Cascading and data-driven alignment•Encourage ambitious "moonshot" thinking and preventsandbagging HowChinese company culture shapes output and their ability to adapt globally Speed over perfectionChinese companies prioritize putting a product in the market Quick to react in the marketChinese companies are very quick to adapt to the market as they release quicklyinsteadofwaiting for perfection. Rather than creatingprototypes,theylaunchsoonerandadjust based on the marketresponse. iterations of products frequently and quickly.However,in the global market,thiscould givebrandsthe reputation of releasing poor products. Fast decision-making and boosted innovationDecisions are more concentrated on a few top-level people, allowing for fast Flat hierarchyWhile this might appear contradictory to common knowledge decision-making. Additionally, internal competition between equal levelemployees boosts innovation. that Chinese culture is more hierarchical than the west, Chinesecompanies tend to have a flatter organizational structure,creating a highly competitive environment within the company. Short-term efficiency, long-term burnoutThe expectation to show face at the workplace regardless of the amount of “Face-time” cultureChinese companies expect employees to be on-site or in-office work there is to be done ultimately lowers the productivity per hour. Youngercompanies are shifting away from “face time” culture. for a certain amount of time, independent of how much workthere is to do. Pragmatism and flexibilityPragmatism and flexibility (变通)are valued. Rules may be Efficient in China, challenging in the westThe flexibility allotted to a Chinese enterprise domestically is not generally adapted based on context or relationships, with an emphasison achieving practical outcomes. Exceptions are often made,especially if one has the right relationships (关系). achievable in the rule-based systems of the west, where consistency, legalcom