"Consumption Downgrade" Becomes the New Normal: China's Younger Generation Faces Economic Pressures During Lunar New Year

China’s Lunar New Year Market Sees Sparse Crowds (AI-Generated Image)

[People News] As China's economic growth slows, the atmosphere of the 2025 Lunar New Year is noticeably different from previous years. More and more young Chinese are re-evaluating their holiday expenses, cutting back on unnecessary spending, and opting for a more pragmatic and simplified approach to celebrating the new year. In interviews with Voice of America, several young people in their 30s expressed that traditional Lunar New Year customs—such as giving red envelopes, buying festive goods, and taking long-distance trips—have all been affected by economic pressures, reflecting a growing trend of "consumption downgrade." Experts point out that this phenomenon is not only a reflection of broader economic conditions but also signals profound shifts in social attitudes and values.

Young People's "Lunar New Year Anxiety": Festive Atmosphere Replaced by Financial Stress

Lunar New Year is traditionally a time of joy and family reunions, but in recent years, an increasing number of young people feel overwhelmed by the financial burdens associated with the holiday. On social media, many netizens have shared their frustrations, citing holiday expenses, job insecurity, and family expectations as sources of stress.

A user named "Greedy Life_" commented: "The economic downturn isn't just reflected in my meager salary; it’s also evident in my boss’s red envelope gifts. They used to be a thick stack, then just a few small bills, and now—nothing but cold air. I finally get it now."

Another user, "Trying Hard to Stay Happy", wrote: "I don’t even know what’s happening this year. My company is struggling, and there are no holiday gifts or red envelopes. In previous years, I used to get 20 days off for Lunar New Year, but this year I have more than a month off—it feels like the company is on the verge of collapse."

User "Yu Congrong" shared: "Lunar New Year is approaching, but the festive spirit is fading. It used to be a traditional celebration, but when I talked to my friends, we all agreed it no longer fits the modern pace of life. Instead, it disrupts our daily routines. Apart from a couple of days off and family reunions, there’s really not much to look forward to… Visiting relatives has become a burden. With the economy in decline this year, I just hope people celebrate in a way that feels right for them."

Another netizen, "One of a Kind-me", commented: "Right now, just having an income is already a blessing. If times are tough, so be it. There’s no need to pretend to be generous when you’re not. A small token is enough. If someone judges you based on the size of your red envelope, let them. After all, if you’re struggling, they won’t be offering to help you anyway."

Economic Downturn Prompts Simplified Red Envelopes: Local Initiative Advocates "No More Than 20 RMB"

Amid economic pressures, some regions in China have begun promoting frugality during the Lunar New Year. For example, Baise City in Guangxi recently proposed an initiative advocating that the amount of lucky money (red envelopes) given during the holiday should not exceed 20 RMB. The initiative also encourages younger generations to give elders "blessing gifts" with sentimental or commemorative value instead of traditional high-value red envelopes, aiming to restore the essence of well-wishing.

This move has garnered widespread attention, with many netizens expressing support, believing it helps alleviate financial burdens and curbs unhealthy social competition. Some have even suggested expanding the initiative nationwide. Similar practices have long existed in Guangdong, where red envelopes often contain just 5 or 10 RMB, focusing more on symbolic blessings rather than material value.

Trend of Consumption Downgrade: Cutting Costs on Festive Goods, Gifts, and Ancestral Worship

Against the backdrop of China’s sluggish economy, Voice of America interviewed several young Chinese in their 30s to understand their perspectives on this year’s Lunar New Year celebrations.

Xiaofang (alias), a 30-year-old legal professional based in Shanghai, has keenly felt the economic downturn. He told Voice of America that many people have already significantly cut back on discretionary spending, and even stores selling Lunar New Year goods appear unusually quiet.

"People have already scaled back non-essential expenses. Many factories sent workers on holiday as early as last November, while only large manufacturers managed to hold out until January before granting Lunar New Year leave," Xiaofang said.

He added, "Buying New Year goods and giving red envelopes has also become more modest—it's not as generous as before." Xiaofang, who used to give his young niece a 1,000 RMB red envelope each year, now plans to give 666 RMB instead, symbolizing good fortune and happiness rather than focusing on the monetary amount.

Speaking on overall consumption trends, he noted that most people are reducing expenditures. He observed that his generation shows little enthusiasm for traditional New Year celebrations, preferring to travel instead. Many even start their trips before the holiday to avoid crowds.

Cost-Cutting in Ancestral Worship and Gift-Giving

Xiaoyue (alias), a 39-year-old government employee from Dalian, is married with one child. Despite having relatively low financial pressures due to not needing to support her parents, she admitted that the economic downturn still affects her holiday plans.

She told Voice of America that while some fixed New Year expenses are unavoidable, she intends to cut costs while still observing traditional customs. For example, she plans to simplify ancestral and deity worship ceremonies, avoiding the previous practice of spending significant time and money on elaborate offerings.

"When the economy is bad, people downgrade their consumption. We need to cut unnecessary expenses—for example, buying fewer candies and snacks. As for worship rituals, we’ll opt for simple store-bought offerings rather than preparing extravagant ones ourselves," Xiaoyue said.

Xiaomao (alias), a 37-year-old entrepreneur in Guangzhou, told Voice of America that while the economy is weaker than in previous years, she still plans to buy essential holiday items as usual. However, she has noticed that other consumers are cutting back.

"I heard that butterfly orchids, which symbolize prosperity, aren’t selling as well as before," she said after visiting a florist to purchase New Year gifts.

Like many businesspeople who rarely take vacations, Xiaomao usually travels abroad during Lunar New Year to relax and escape the holiday pressures. However, this year, she has yet to make any travel plans.

Government Subsidies Encourage Young People to Buy Smartphones and Tablets as Lunar New Year Gifts

This year, 36-year-old Anan (alias), an educator in Beijing, returned to his hometown in Fujian for the Lunar New Year. While he acknowledges the sluggish economy, he personally feels little impact.

Anan believes that Lunar New Year expenses are naturally limited—by reducing frequent visits to relatives, costs are significantly lowered. He noted that many small families now prefer simple gatherings over traditional, elaborate rituals. This shift is driven not only by financial concerns but also by a desire for convenience and comfort.

For many young people, the psychological pressure of long-term unemployment or repeated failures in the civil service exam outweighs financial burdens. Meanwhile, married couples face the dual strain of mortgage payments and childcare.

"If you're living in the city, married, raising children, and repaying a mortgage, and then suddenly lose your job before the Lunar New Year, the pressure is immense," he explained.

Anan also observed a notable shift in gift-giving practices this year, influenced by the government's subsidy program for electronics. As of January 20, China has been offering subsidies for smartphones, tablets, smartwatches, and fitness bands—each person can receive a 15% subsidy per category, capped at 500 RMB. According to the Ministry of Commerce, as of January 24, 7.92 million consumers have applied for subsidies on 10.78 million devices.

"I think this is part of the government's effort to stimulate consumption amid the economic downturn. With these subsidies, many people are likely to buy 3C (consumer electronics) products. I've seen young people in my WeChat Moments using this opportunity to upgrade their elders’ phones, making it a Lunar New Year gift," Anan noted.

Simplifying Lunar New Year Traditions: A Long-Term Trend?

As young people increasingly scale back their Lunar New Year spending, Associate Professor Chong Ja Ian from the National University of Singapore’s Department of Political Science believes this reflects uncertainty about the future economy as well as evolving consumption habits.

"This phenomenon—reducing New Year spending—is not just about the economic climate; it also signals uncertainty about one’s future financial situation and changing lifestyle preferences," he told Voice of America.

Professor Sun Guoxiang from Taiwan’s Nanhua University also pointed out that economic pressures are a key factor influencing the transformation of Lunar New Year traditions.

"The economic downturn has reduced spending power, prompting young people to focus on rational consumption and practical needs. This leads to cutting down on costly traditional New Year customs. Some even choose to stay where they are instead of returning home, as a way to cope with financial stress," Sun explained.

Many traditional New Year activities—purchasing holiday goods, visiting relatives, and giving red envelopes—are being simplified or omitted due to financial and psychological burdens.

Modern lifestyles are also reshaping Lunar New Year traditions. Sun believes that as life becomes faster-paced and environmental awareness grows, young Chinese increasingly prioritize convenience, comfort, and personal space over the lively and ritualistic aspects of the holiday.

Shifting family dynamics also play a role. Sun noted that familial pressures related to career, marriage, and education drive some young people to avoid returning home for the holidays. Additionally, the weakening of traditional family values and generational conflicts have reduced their enthusiasm for Lunar New Year celebrations.

"Chinese youth will likely continue simplifying New Year traditions to alleviate both financial and mental stress. Meanwhile, the balance between cultural preservation and modernization, as well as broader societal shifts, may lead to a diversification of New Year celebrations. The simplification trend will persist, but whether it intensifies depends on China’s economic development," he concluded.

(Republished from Voice of America)