Business Daily Can China’s debt problem be solved?
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Oct 19, 2025 Explore China's staggering household debt, surging past 60% of GDP, and the growing wave of personal loan defaults. Listen to gripping personal stories of bankruptcy and the struggles of small businesses facing financial ruin. Hear experts debate the potential of savings and government stimulus to revitalize consumer spending. Discover how the Communist Party's priorities clash with needed economic reforms, and reflect on opportunities in the service sector, as business owners navigate a path to recovery.
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Business Owner Bankrupted By Lockdowns
- Mr Lin, a Shanghai business owner, described how Covid lockdowns crushed revenues and pushed his company into bankruptcy.
- He personally guaranteed loans, faced detention, and now relies on friends and family while his pension is frozen.
Restaurant Owner Trapped By Frozen Funds
- Miss Wang, a Shanghai restaurateur, said pandemic closures left her with no income and frozen funds so she couldn't meet court-ordered repayments.
- She remains willing to pay but fears the blacklist that restricts travel and business roles.
Mass Personal Defaults, But Officials Are Calm
- Household debt in China has risen sharply, with an estimated 25–34 million people in default.
- Officials argue the problem is manageable and that consumer confidence is gradually returning.