The glow of China’s towering skyscrapers is dimming. Once a symbol of relentless productivity, office buildings that used to stay lit through the night are now going dark earlier.

Two corporate giants—drone manufacturer DJI and home appliance maker Midea—recently sparked debate on social media after introducing policies that forcibly clock out employees, banning late-night work. The move has ignited widespread discussion about shifting workplace norms in China.

According to 36Kr, Midea’s headquarters in Foshan has implemented strict rules to curb overtime. Department heads are now responsible for ensuring that employees leave on time. Staying in the office past 6:20 p.m. is no longer allowed, nor is returning to desks after dinner to resume work.

In fact, as early as January, Midea’s chairman and president, Fang Hongbo, had already issued an internal document advising employees in China to streamline work processes. The directive banned PowerPoint for internal communication, prohibited gifting and unofficial team-building activities, and outlawed after-hours meetings and performative overtime.

DJI has taken a similarly rigid approach. According to The Economic Observer, its overtime policy took effect on February 27, and has now been in place for nearly two weeks. At 9:00 p.m. sharp, department managers and HR representatives begin clearing out employees in three rounds. Within an hour, the office floor is empty.

That’s the rule at DJI’s Shenzhen headquarters. In its Shanghai office, the lights shut off at 9:00 p.m. on the dot.

After years of debate over China’s grueling “996” work culture—where employees work 9:00 a.m. to 9:00 p.m, six days a week—corporations are no longer just paying lip service to efficiency. They’re taking concrete action, signaling a shift driven by cost-cutting and productivity concerns.

A recurring theme

This isn’t the first time Chinese firms have tried reining in excessive work hours. The movement to curb overtime first gained traction in 2021, when Tencent’s Interactive Entertainment Group (IEG) introduced new policies at its LightSpeed Studios division. The rules ensured two-day weekends and mandated early departures on specific days: employees had to leave by 6:00 p.m. on Wednesdays and no later than 9:00 p.m. on other weekdays. During peak project periods, overtime had to be pre-approved, and consecutive late nights were strictly prohibited.

Around the same time, ByteDance introduced a “1075” work schedule—10:00 a.m. to 7:00 p.m, five days a week—a policy that quickly trended on social media.

The motivation behind these changes is clear. With slowing growth in China’s tech sector, firms have been forced to rethink the extreme work culture they once imposed.

For DJI and Midea, forced clockouts didn’t happen overnight. Signs of this shift appeared some time ago.

At the end of 2023, DJI announced it would stop reimbursing late-night taxi rides for employees. The company also shut down its gym, badminton courts, and swimming pool, slashed team-building budgets, and compensated employees with 500 “GT coins” per month—a virtual currency within DJI’s internal marketplace, pegged to the Chinese yuan, which can be used for food, merchandise, or cash withdrawals.

These measures, including the latest clockout policy, are all part of DJI’s broader strategy to reduce costs and improve management efficiency.

Concerns about market saturation in consumer drones have been growing for years. DJI’s founder, Frank Wang, once estimated that RMB 20 billion (USD 2.8 billion) was the revenue ceiling for the industry. By 2017, DJI’s global revenue had already reached RMB 17.57 billion (USD 2.5 billion)—not far from that limit.

Midea, on the other hand, isn’t just focused on cost-cutting.

Among Chinese home appliance manufacturers, Midea has been one of the fastest to expand overseas. In the first half of 2024, its international revenue outpaced domestic growth, with foreign sales accounting for over 40% of total revenue.

During this period, Midea was also restructuring its European operations. In February, it completed the acquisition of Arbonia Climate, the climate division of Swiss building equipment supplier Arbonia AG. The move strengthened Midea’s European presence but also increased pressure to enhance its environmental, social, and governance (ESG) image—a likely factor behind its policy shift.

This trend isn’t unique to Midea. In recent years, many Chinese firms expanding internationally have introduced policies to simplify workflows and curb overtime.

Shortly after Fang issued Midea’s internal directive, Miniso’s chairman, Ye Guofu, implemented a similar ban on performative work practices, including prohibiting PowerPoint for internal communication. Meanwhile, Haier rolled out a company-wide two-day weekend policy, extending it to traditionally high-demand departments like R&D and marketing.

The “996” wave reaches overseas

When discussions about workplace rights and employee protections arise, foreign corporate cultures are often held up as ideal models. But the reality is more complicated.

In Japan, labor laws are particularly strict. In 2019, the Ministry of Health, Labor and Welfare (MHLW) revised the country’s Labor Standards Act, capping overtime at 45 hours per month and 360 hours per year. Employers must also ensure workers take at least five days of paid leave per year if they have more than ten days of accumulated leave.

Violations come with harsh penalties. Companies forcing employees to work over 100 overtime hours per month or failing to enforce paid leave can face up to six months in prison or fines of JPY 300,000 (USD 2,024).

These regulations didn’t appear overnight. Japan’s toxic overtime culture has long been associated with “karoshi,” or death from overwork. A government white paper on overwork death found that over 20% of Japanese companies exceed the karoshi threshold for overtime. Mounting public pressure eventually led to legal reforms.

Europe has gone even further. After the pandemic, countries like New Zealand, Spain, Finland, and Ireland launched three-year pilot programs for four-day workweeks. Iceland was ahead of the curve, testing 35- to 36-hour workweeks in both public and private sectors without pay cuts.

Meanwhile, in the US, Silicon Valley’s once-flexible work culture has shifted dramatically post-pandemic.

In 2022, X (formerly Twitter) required employees to sign a “hardcore” pledge, committing to full-time office work and 40-hour weeks, or be terminated. That same year, Twitter and Amazon conducted mass layoffs, challenging the long-held perception of a relaxed tech work environment.

As the global economy slows and uncertainty looms, the 996 mentality has begun to spread overseas, just as Chinese firms experiment with work-life balance. But whether forced clockouts can become a sustainable long-term policy remains an open question.

KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Hu Yiting for 36Kr.