Hundreds of millions trapped in debt black hole, Bloomberg: 10 trillion household bad debts become invisible minefield for China's economic recovery

Consumer finance risks in China continue to escalate. A recent analysis by research firm Gavekal Dragonomics indicates that by the end of 2025, the scale of non-performing household debt in China will have climbed to at least RMB 2.22 trillion (approximately NT$10.37 trillion), an annual increase of 21%, reaching a historic high. It is estimated that up to 100 million Chinese adults are experiencing overdue debt issues, accounting for about 10.6% of the national adult population, forming an invisible financial crisis that could drag down China's economic recovery. Bloomberg News reports that from credit cards to mortgages, China's non-performing consumer loans have surged in recent years. According to Gavekal Dragonomics data, household bad debts rapidly soared by 21% last year, reaching a record high of at least RMB 2.22 trillion (approximately USD 329 billion, NT$10.37 trillion). As Chinese authorities have stopped releasing overall statistics on overdue and defaulted personal loans, Gavekal Dragonomics estimates this by analyzing financial reports from 26 banks and other data sources. Meanwhile, the Zhejiang University Finance Research Institute points out that Chinese financial institutions may need to handle up to RMB 2 to 3 trillion in non-performing personal debt annually.