Wu Qing, a small garment factory owner in Shandong province, faced a financial crisis as his business deteriorated post-pandemic. He incurred 300,000 yuan in loans for business expansion in 2019, then borrowed another 500,000 yuan through consumer loans and credit cards to sustain his business amidst economic woes. By mid-2023, Wu was struggling with loan repayments amid China’s sluggish economic recovery, mirroring the struggles of many others who are burdened by debt. Similarly, Fu Peng, a restaurant owner in Hefei, is overwhelmed with 4 million yuan in loans and struggles to keep up with his nearly 60,000-yuan monthly repayments despite earning between 15,000 and 25,000 yuan monthly [para. 1][para. 2][para. 3][para. 4].
The financial…
