China’s Economic Crisis Deepens, Social Risks Grow Amid Mass Layoffs, Bankruptcies

‘We’re likely on the path to a full-blown depression,’ an expert says.

A worker inspects a vehicle's charging system in Hefei, China, on Jan. 17, 2025. Kevin Frayer/Getty Images

News Analysis

In light of recent mass layoffs and bankruptcies in China, experts warn that China’s economy is entering a deep recession, possibly a depression, with rising unemployment and systemic risks that could trigger large-scale social instability.