China's Youth Embrace Frugality: A Response to Economic Uncertainty

Wed Nov 12 2025 14:01:30 GMT+0200 (Eastern European Standard Time)

Amidst rising youth unemployment and economic challenges, young Chinese citizens are opting for minimalism and frugality, altering consumption habits drastically.

China's youth are facing significant economic challenges with unemployment rates nearing 20%. This has led many to adopt frugal lifestyles, sharing tips for surviving on limited budgets through social media. Influencers emphasize the importance of understanding consumption traps while showcasing their minimalist approaches. Analysts warn that unless domestic consumption rises, the economy may struggle to recover from its current stagnation.

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, and those who have jobs fear they could lose them. The ongoing property crisis also makes the prospect of home ownership seem unreachable, especially in big cities.

In light of this uncertainty, many of China's youth are embracing frugality. Social media has been flooded with tips on how to survive on small amounts of money.

One influencer, known as Zhang Small Grain of Rice, shares tips on adopting a minimalist lifestyle, showcasing her use of ordinary soap for all cleaning needs to avoid spending on expensive products.

Similarly, another influencer, Little Grass Floating In Beijing, highlights budget-friendly meals, claiming he can create two meals for just over $1. His frugal habits have also allowed him to save over $180,000 in six years.

As younger people face challenges securing well-paying jobs, many express pessimism about their financial futures. This sense of insecurity also leads to lower spending, further impacting China's economy, which relies heavily on domestic consumption.

Analysts have criticized the government for its failure to uplift domestic consumption, with current rates hovering around 39% of GDP, compared to about 60% in developed countries.

Amidst discussions of economic recovery, the younger generation's return to traditional frugality reflects deep-rooted cultural values. Zhang notes that her grandparents were also frugal, describing thriftiness as ingrained in Chinese culture.

If China does not address these consumption patterns, long-term economic prospects may continue to dim, highlighting the pressing need for renewed focus on domestic spending and economic empowerment.