Debt, Closures, and Despair Sweep China’s East

A surge of business closures has hit one of China’s wealthiest regions, with recovery nowhere in sight.
Debt, Closures, and Despair Sweep China’s East
A worker prepares Christmas decorations for export at a factory near Yiwu, Zhejiang Province, China, on April 28, 2025. Kevin Frayer/Getty Images
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China’s ongoing economic downturn is taking a heavy toll on private enterprises in the eastern coastal region, which was once considered the driving force behind the country’s economic rise.

Many business owners have shared on social media or in interviews that they are overwhelmed by debt amid a steep drop in orders. Some have already shut down their businesses and held farewell meals with employees. A few have even openly expressed thoughts of suicide.