Why so many Chinese are drowning in debt

Some contemplate suicide. Others vaunt their folly as influencers

THE RISE of a property-owning, entrepreneurial middle class in China has transformed its cities in this century. It has helped to spur consumption in the world’s second-largest economy. In May retail sales grew by 6.4% year on year—the fastest pace since December 2023—helped by state subsidies aimed at reviving consumers’ enthusiasm. The government has even cautiously promoted borrowing in past years. But all this has created new risks. Along with car-jammed streets, glitzy restaurants and vast malls has come an invisible change that is no less great: soaring household debt.

This article appeared in the China section of the print edition under the headline “Struggling to get by”

From the July 12th 2025 edition

Discover stories from this section and more in the list of contents

China’s world-beating solar industry is in turmoil

The Gulf war won’t save it

China’s diplomatic successes are broad but shallow

It asks little of its foreign “partners”, and gives little back

What China can learn from Japan about escaping deflation

The right kind of Japanification

How China quietly helps Russia in Ukraine

Its firms send drones, nitrocellulose for rockets and more

Vladimir Putin’s turn with Xi Jinping

Hosting back-to-back visits by Putin and Trump, China shows its power

What did Trump and Xi actually achieve?

Divergent accounts suggest little progress on trade, Taiwan, Iran and AI