Summary of Key Points
In August 2026, Jiangsu Xingyu Auto Lights (a leading company in the domestic automotive lighting industry) advised 107 fresh graduates of the class of 2026 to leave the company within just one month of starting their jobs, citing changes in the industry environment. The company offered them two options: either resign voluntarily and receive a half-month's salary as compensation or accept a transfer to a production line with a reduced salary. After intervention from the human resources and social security department, the company increased the compensation to include three months' job-seeking subsidies and free accommodation, as well as an additional six months' salary if they remained unemployed for that period. The core issue that sparked public debate is this: these students, once highly sought-after talents by universities, suddenly became "cost burdens" that companies could dispose of at will. Essentially, this is the inevitable result of the clash between two different evaluation systems—universities' "quota-based" approaches and companies' "survival-oriented" priorities.
Detailed Analysis
1. Universities Compete for You, Not Because of Your Excellence, but Because of Your Scores
Many students think that universities are competing for them because they recognize their talent, but in reality, it's a "competition for student quotas." In the context of university survival, college entrance exam scores are the ultimate criterion: higher admission scores and higher average scores for new students not only enhance the university's reputation but also directly affect government funding, academic evaluations, and project application qualifications (which are like the university's "stock price"). By attracting high-scoring students, universities can secure more resources, which is why they are willing to offer substantial incentives (such as scholarships for top performers or combined bachelor's, master's, and doctoral programs). To universities, you are not a unique individual; you are merely a carrier of scores. A one-point difference in scores can cause a university to drop hundreds in rankings, affecting its access to resources. Therefore, what universities are after is the benefits that scores bring, not the students themselves. Students often mistake this competition for a recognition of their own worth, which can lead to disappointment upon graduation.
2. Companies Avoiding Fresh Graduates: Targeting the Easy Targets
Companies prioritize survival. The automotive parts industry, where Xingyu Auto Lights operates, is facing a tough time: the shift towards electrification has reduced traditional job positions, and price wars among car manufacturers have decreased profits for upstream suppliers (Xingyu's net profit decreased by 5.26% in the first half of 2026). At this time, cutting costs and increasing efficiency means that fresh graduates are the easiest group to lay off:
- Low cost: They have been with the company for a short time, so the compensation is minimal (initially only half a month's salary, far less than what older employees would receive);
- Minimal impact: They are still in training or on rotation and not involved in core business, so their departure won't disrupt projects;
- Little resistance: New employees have no significant ties to the company, making them easier to dismiss without causing internal turmoil.
Moreover, many companies hire more than they need during boom times and issue multiple offers to prevent employees from leaving before they start. When the industry declines, these excess hires become a burden. For companies, this is a normal adjustment, but for graduates, it's a major setback in their careers.
3. The Clash of Two Evaluation Systems
The evaluation logic of universities and companies is vastly different:
- Universities: They use college entrance exam scores to label students as elites and expect them to be treated preferentially;
- Companies: They focus on the value that students can create, and those who have not yet contributed are seen as a burden.
This clash is also driven by two realities:
- Educational Inflation: There are too many college graduates (12.7 million in the class of 2026, a 40% decrease from 2022), and the role of college graduates has shifted from being elite individuals to that of ordinary workers, meaning companies no longer pay a premium for degrees;
- Mismatch in Training: University curricula often lag behind industry needs (for example, students may study traditional automotive knowledge for four years, but companies need skills for electrification). Fresh graduates often require 3-6 months of training to be productive, and during good times, companies are willing to wait, but in tough times, they prefer to hire experienced workers.
4. Wake Up: The Status of College Graduates Is No Longer a Guarantee
The Xingyu incident serves as a wake-up call for everyone:
- Students: Stop deluding yourself that your college entrance exam success or university recognition equates to workplace value. The workplace cares only about what you can do. Learn practical skills during your studies (through internships and industry connections) and focus on building a portfolio of practical experience, not just academic credentials;
- Universities: Stop the excessive competition for high-scoring students and adjust their curricula to meet industry demands. Eliminate outdated programs and strengthen practical training in collaboration with companies to ensure graduates are ready for work;
- Companies: Stop treating campus recruitment as a mere pool of labor. Regulators should enforce limits on excessive hiring and protect the rights of fresh graduates. Local governments should not tolerate companies exploiting them for the sake of a favorable business environment.
In Conclusion
The college entrance exam is just one exam in life, and a degree is a stepping stone, not a guarantee of success. What truly determines your success is the value you can create. However, when the economy declines to the point where even your value is ignored, that's when you need to be especially vigilant.