Nearly 100 million consumers in China are struggling to repay personal debt, highlighting a largely hidden crisis that threatens efforts towards reviving the world’s second-largest economy, according to reports.
Citing Gavekal Dragonomics, multiple local media reports have claimed that non-performing household debt in China has jumped 21 per cent year-on-year to a record 2.22 trillion yuan (about $329 billion) in 2025, according to IANS.
The estimates point out that nearly 10 per cent of China’s 1.1 billion adult population had fallen behind on debt repayments by 2025 end.
Further, the report highlights that rising defaults on credit cards, consumer loans and mortgages have emerged as a major challenge for the country, prompting serious concerns over weakening household finances.
Also, the debt burden is weighing on consumer spending as banks in China are said to have become more cautious in extending new loans despite government efforts to stimulate demand.
Additionally, the household debt in China has almost tripled over the past decade and reached around 83 trillion yuan.
Online lenders have reportedly expanded consumer credit and are offering instant loans and simplified borrowing processes, with younger consumers being in focus.
Last year, the People’s Bank of China came up with a credit-amnesty programme to aid specific borrowers to repair their credit records after clearing overdue debt.