When combined, 亏损 (kuīsǔn) literally translates to “deficient and damaged” or “lacking and decreasing.” This powerful combination perfectly captures the modern meaning of a financial deficit where a company's assets or value has been reduced.
In a culture that highly values stability, saving, and demonstrable success, 亏损 (kuīsǔn) is more than just a number on a spreadsheet; it can be a source of significant stress and “loss of face” (面子, miànzi). While the Western “fail fast” startup culture often views temporary losses as a necessary part of growth (i.e., burning cash to gain market share), the traditional Chinese business mindset is often more risk-averse. A state of 亏损 can be seen as a direct reflection of poor management or a flawed strategy. For state-owned enterprises (SOEs), consistent 亏损 can have serious career implications for leadership. However, with the rise of China's tech and venture capital scene, this attitude is evolving. Ambitious startups, like their Silicon Valley counterparts, may now strategically operate at a 亏损 to rapidly scale. Nevertheless, the ultimate goal is always the celebrated milestone of 扭亏为盈 (niǔ kuī wéi yíng)—“turning a loss into a profit,” which is a frequent and praiseworthy headline in Chinese financial news.
亏损 is a formal and specific term. You'll encounter it most often in the following contexts:
It's important to know that in casual, everyday conversation, people are more likely to use the simpler phrase 赔钱了 (péi qián le), which literally means “lost money,” to talk about a bad business deal or a failed venture. 亏损 is the official accounting term; 赔钱 is the everyday experience.