Since the outbreak of the COVID-19 pandemic, also known as the Communist virus, China’s economy has been on a downward trend, leading to widespread unemployment, loss of credibility, and mounting debts. Epoch Times journalists have collected stories of some of the debtors in China.
According to data from the People’s Bank of China, as of the end of 2024, the total debt balance of Chinese households from banks, including both short-term and long-term debts, stood at 82.84 trillion yuan (renminbi), accounting for 61.4% of GDP and showing an upward trend.
One debtor in Shanghai, named Dalong, who owes 3 million yuan, disclosed to Epoch Times on September 29th, “I owe 3 million yuan, running a restaurant. If I can’t repay the debt, my credit record will be ruined. Currently, I still have over 800,000 yuan in debt.”
Dalong mentioned a friend who was in the cherry business, with two containers of fruits rotting at sea during the pandemic period, resulting in a loss of 42 million yuan. Eventually, after selling the house and cars, within a month, all assets were gone. Even with debts totaling 24 million yuan, they are impossible to repay and may end up defaulting.
“Creditors and banks keep pursuing, but with no assets under my name for forced execution, the only recourse is to limit high spending,” Dalong said.
Some people have resorted to extreme measures like jumping off buildings due to debts. Dalong recalled an incident where they had to stop a friend from jumping off a building, which involved a dramatic rescue operation to prevent a tragedy.
Another friend of Dalong’s, who operated a horse racing business, lost 8 million yuan and currently has over 1 million yuan in debt.
Dalong pointed out that the impact of the COVID-19 outbreak hit hard, especially affecting tour guides, bus operators, restaurant operators, who later had to switch to delivery services or driving for ride-hailing apps. Some individuals resorted to delivering goods or doing temporary work in courier warehouses and facing long queues at the labor arbitration office.
“The impact on major cities like Beijing, Shanghai, Guangzhou, and Shenzhen has been severe since 90% of people rely on mortgage loans for houses and cars. Once they lose their jobs, everything comes crashing down,” Dalong explained.
In Harbin, Heilongjiang province, Wang Ran, who was once a middle-class individual, started accumulating debt since the onset of the pandemic. “I work in the technology industry and owe 10 million yuan. The main reason for my debt is the government delaying payment, and now, the government is running out of funds due to endless turmoil.”
Yang Kai, a debtor in Nanjing, Jiangsu province, revealed that he currently owes around 2 million yuan. He mainly borrowed high-interest loans when his business suffered losses resulting in accumulated debts.
According to Yang, most physical stores are barely staying afloat with a higher debt burden. The easy accessibility of small loans has led many individuals, even those from official institutions, in debt.
In Beijing, Fang Lan shared the story of a relative in Baotou who was into construction, owing a significant sum of 26 million yuan, leading to severe distress and suicidal thoughts. Eventually, after struggling to secure employment and repay debts, there has been some progress in settling the debt.
Reflecting on their experiences, debtors like Dalong emphasize the importance of accepting the situation, repaying debts if possible, and maintaining a positive outlook to overcome financial challenges. They emphasize that anxiety and suppression do not help but adjusting one’s mindset can provide comfort amidst uncertainties.
Yang Kai stressed the need for prioritizing daily living essentials, steady emotional well-being, and acknowledging that overcoming debt challenges requires time and a strategic approach. Resolving problems openly and staying grounded become essential in tackling financial woes.
Fang Lan, who witnessed challenging economic environments and business closures, highlighted the resilience needed when pushed to the brink, advocating for resilience and the tenacity to bounce back against all odds.
Not everyone, however, can muster such optimism, leading to tragic outcomes as seen with prominent figures in business circles resorting to suicide amid insurmountable debts.
On July 17th, the owner of the struggling renovation company ‘Jing Jia Ju’, Zeng Yuzhou, tragically jumped off a building at the age of 53. Despite his social media post expressing determination, the distress was too overwhelming leading to his untimely death.
Similarly, the chairman of Zhejiang Golden Dot Textile Technology Co., Ltd., Bi Guangjun, aged 56, also took his own life by jumping off a building on April 16th. The drastic decision came amid daunting financial disputes totaling 3.7 billion yuan.
The tragic incidents serve as a stark reminder of the immense pressures, mental health challenges, and dire consequences faced by individuals overwhelmed by debt burdens in a challenging economic climate.