让步 literally means 'to yield a step'—'让' (ràng) means 'to yield, to give way', and '步' (bù) means 'step'. Together, they form a compound expressing the act of making a concession or compromise, especially in negotiations, arguments, or personal relationships. It implies voluntarily giving up part of one’s position or demand to reach agreement or maintain harmony.

As both a noun and verb, 让步 is commonly used in formal and informal contexts: you can say '做出让步' (make a concession), '不肯让步' (refuse to compromise), or '双方各让一步' (both sides compromise a little). It often carries a subtle nuance—it may suggest maturity and flexibility, but sometimes also weakness or reluctance, depending on context and tone.