China’s crying horse trend a tale of economic misery
Cuddly toy’s inverted smile has become a downtrodden symbol of a nation mired in problems
A crying cuddly toy illustrates the state of China’s economy. Born out of a perceived manufacturing mistake, its inverted smile has become a downtrodden symbol ahead of the country’s Year of the Horse, which celebrates “high energy and hard work.”
The complete opposite of the nation’s mood amid anemic domestic demand, evaporating household wealth and stagnating salaries. For many workers, this red stuffed horse represents the grueling 9-9-6 work culture, which means 9 am to 9 pm, six days a week.
It also highlights the risks of rising unemployment as the ‘feel good factor’ evaporates and is replaced by the odorous scent of discontent. All this only adds to a subconscious feeling of anger ahead of the Chinese Lunar New Year later this month, especially among the young.
“This has been happening for years, with movements like ‘lying flat,’ but it captures a general psyche where many Chinese consumers are feeling less optimistic,” Mark Tanner, the managing director of Chinese consumer research firm China Skinny, told Business Insider.
External activity continues to be stronger than domestic demand.
Lynn Song, chief economist for Greater China at ING
State of the nation:
- Economic numbers have revealed a two-tier manufacturing sector in the past 48 hours. China’s official PMI contracted last month to 49.3 from December’s 50.1 expansion.
- Yet on Monday, the RatingDog China General Manufacturing PMI, compiled by S&P Global, edged higher at 50.3 in January from 50.1 the previous month.
Delver deeper: “There were a few silver linings in the [official] data, [but it] diverges from the RatingDog PMI,” Lynn Song, the chief economist for Greater China at ING, pointed out.
Between the lines: “[It] suggests that external activity continues to be stronger than domestic demand,” she said, referring to the private sector study’s continued export blitz.
Big picture: In 2025, China reported an eye-popping US$1.2 trillion trade surplus as its cheap, high-tech exports flooded Europe, Southeast Asia, Africa and Latin America. The shock waves simply illustrated the depressed state of its home market.
Bottom line: “The loudest complaints about [the] surplus [came] from the EU [European Union]. The bloc called for Beijing to stimulate domestic demand and reduce its own barriers to manufactured imports,” the Financial Times reported last month.
China Factor comment: There is a similar outcry inside the world’s second-largest economy, underlined by the crying horse craze. Beneath the stunning growth numbers lies an uncomfortable truth that “ordinary” people are struggling and disillusioned.