Eatery Loses 500K in Three Months, China’s Personal Debt up 50%, 8 Million Become Defaulters

Business bankruptcies, entrepreneurial failures, unemployment, and salary reductions have been ongoing topics in recent years. Many former business owners have accumulated debts and been forced into becoming “debt defaulters”, while numerous individuals have been blacklisted for credit breaches due to job losses and interrupted mortgage payments. Data shows that in the past five years, China's personal debt has surged by 50%. Those branded as debt defaulters now number over 8.5 million, a near 50% increase from 5.7 million at the beginning of 2020. These debtors, who have failed to meet their repayment schedules for home or business loans, mostly range in age from 18 to 59 and constitute 1% of China's workforce.
#chinaobserver
All rights reserved.

[@Luminousplayer]

They claim success was buying luxury cars they didnt need

[@iina-tv4yk]

100 % real no fake

[@cardmansales9376]

stay humble is the key to success

CHINA IS MISSING GOD! NOT ONLY CHINA, THE WEST AND THE REST OF THE WORLD. A LAND WITH NO FAITH, HAS NO HOPE! I am a Catholic sister/nun. Used to be atheist. Forgiveness saved me from suicide.

[@KaiserNightcoreMusic]

@@cardmansales9376 100% unadultered truth.

[@Spoopball]

Alot of scammers and gurus try to pretend to do this with "the lifestyle"

[@maapaa2010]

They get defaulted and still have to pay back the debt which in many cases the regime caused due to their fraud, corruption, incompetence and stupidity.. disgusting

[@user-qo3ci2wb3x]

EXACTLY the same in Vietnam!

[@KaiserNightcoreMusic]

@@user-qo3ci2wb3x also Brazil. actually i think this is a global issue as the system operates the same in most countries.

[@BarnzTT]

This also happens in the west as well. We have seen too many times people losing everything investing in stocks.

[@kateryan9988]

Remember to thank your supreme leader Xi for the current state that you're in!

[@frankgutierrez6016]

I bet when they were rich. They treated non rich people like crap. When the attendant pump gas into their cars. They just throw rhe money out the window to make them pick up of the ground. They treat wait staff like crap.

[@joannlarson6386]

Yeah ,I never liked going out with snobs to dinner. Don't want spit or buggers put into my food because of someone thinking they are better than.

[@nathansmith5464]

Look at all of the damage that Secretary Xi has wrought! Look at what he has done to Hong Kong and now the Mainland. WHAT A FOOL! {{{headshake}}}

[@alrighty6898]

This is what happens when you have only 1 person making all the decisions. The people pay for the 200+ ccp employees to sit around Xi and clap

[@Sussex_Seagull]

Are they expecting sympathy from the West? where did the jobs and work come from in the first place?

[@Chimaera298]

This is due to government interference. Governments have now become lienient to no avail. If you look at the Chinese technology fair recently there's no westerner willing to buy.

[@Chimaera298]

Considering the zero COVID policy after the 2022 world cup

[@matthewobrien5925]

Not to mention that their goal of becoming #1 in the world while not being free / in a democratic system is literally = immoral & evil. It's like a sick person whose raison d'etre = spreading their AIDS to the world.

[@emmapeel8163]

@@Chimaera298.. before that, many nations lost good paying jobs in factories to Chinese. it gutted entire cities in USA. what's happened to Chinese already happened to many other places.

[@shermanpeabody6102]

​@@emmapeel8163 The owner of the factory moved their business operation to China. The factory did not moved itself to China under the command of China government 🦉

[@SuikodenGR]

I dont feel too bad for them. Their culture always revolve around status - how many cars, houses, business. And not rather live within their means.

[@HO1ySh33t]

Bruh, Chinese in general are way better than Americans at living within their means, that's why they're suffering from deflation, while US is suffering from inflation. Chinese just stop shopping during economic downturn, while Americans can't stop shopping during economic downturn

[@JerBuster77]

I dont have any sympathy for those in the video who were living an affluent life while being ignorant to the pandemic situation happening around them.

[@drzerogi]

What makes you think that they were being ignorant? It's pretty clear that the CCP's response to the pandemic put them in the situation in which their actions placed them in debt. We don't know the specifics, but it's quite likely that they took on debt to try to save their business(es) in the hope of weathering the lockdowns and that the economy would rebound afterwards. In fact, I'm almost certain this is the case: if they shut down their businesses early and hoarded their riches, they wouldn't be in debt.

[@MasticinaAkicta]

Remember though GDP is 5%+, great moment for investment in China. HAHAHAHHAHHAA That country is crashing sooo hard.

[@ChickenMcThiccken]

so do you believe the american media when it says our growth is gonna be 2.8%? media not telling us exactly how many businesses closed. they also don't tell us how many people are actually unemployed.

[@sleepinglaffey3886]

#sloprosperity

[@tarstarkusz]

This is foolishness. Money isn't that important. If all the money disappeared tomorrow, all the stuff would still exist. All the productive capacity would still exist. All those factories will still exist.

[@madarah8533]

​@@tarstarkusz all of that is useless if theres no money to facilitate trade

[@TheBarbahaba]

95% of it is government investing in non profitable projects .. its like paying a guy 10$ to dig a hole and another guy to cover the hole with the dirt for 10 $ there you go we added 20$ to the gdp yet no benefit from it and its money china cant afford .. clearly this is not sustainable ..

[@Killercutsvideo]

To think that man that had 10s if millions. If he knew to leave China before the lockdown he STILL would have all his riches and dignity.

[@mxjame546]

That like i wish i had bough bit coin a decade ago. They can't have known

[@lance8080]

China is where he belongs 🇨🇳 don’t want him here .

[@matthewobrien5925]

Everyone knows the true goal of the Chinese Market = smuggling the $$$ out to America/Canada once a big enough stack of cash is accumulated. This poor guy stayed at the blackjack table too long.

[@fredEVOIX]

@@mxjame546 yeah could have bought some for 5$ back then a friend had one and bought sandwiches must be even worse for him >

CHINA IS MISSING GOD! NOT ONLY CHINA, THE WEST AND THE REST OF THE WORLD. A LAND WITH NO FAITH, HAS NO HOPE! I am a Catholic sister/nun. Used to be atheist. Forgiveness saved me from suicide.

[@RichardDong68]

Here's an idea: If they never bought luxurious and expensive assets that only served to flaunt their money upon their peers, they likely wouldn't have this problem in the first place.

[@Koushi82]

when rent is too high and employers pay too little what did people think would happen?

[@MeiinUK]

It reached that point cos they dragged on their lockdown period... And that is also their own faults too. Cos apparently they used big data's on other countries without our knowledge.. and in doing so, they literally took in heart other countries decisions too..over their own country's decisions. So..... Lol.

[@kennethvenezia4400]

Banks and property developers share in the loss? Oh, you innocent naive young man. 😂

[@user-iz6fw5zb5f]

If you do bad deeds, you don't go to hell after you die, you are reborn as a Chinese.

[@KyriToe]

Life on extreme difficulty with debuff modifiers on buff modifier on enemies

[@victor.huy.8021]

There’s no “hell”. It’s all about your mental state. Mental state that society assigned to you. How are you going to handle that assignment? That job could be easy or hard depending on your soul. “A person who had nothing and lose nothing is in heaven. A person who had everything and lose everything is in hell.” Keep this in mind, both are equal at the end. They both have nothing at the end.

CHINA IS MISSING GOD! NOT ONLY CHINA, THE WEST AND THE REST OF THE WORLD. A LAND WITH NO FAITH, HAS NO HOPE! I am a Catholic sister/nun. Used to be atheist. Forgiveness saved me from suicide.

[@tinanguyen6191]

😂😂😂

[@Alpha_Q_up.]

[@sunny-sq6ci]

the common theme with these seems to be almost self inflicted. hard to be sympathetic when they said they spent/ blown their money and future on luxury objects

[@GSSurry]

All those failed business owners have one thing in common, buy a Ferrari to show off.

[@pablosskates7067]

It’s a microcosm of Chinese culture and CCP culture in general. They’ve almost built 30,000 dams now even though they only need a fraction of that. Each city has dozens more bridges, airports, and train lines than needed. Why? Cause of this face culture. This desire to show the world high GDP year after year at all costs even if it’s building stuff no one needs and plugging the country into bankruptcy. Building 20 high speed rail lines when the country only needed 3 is basically like buying a Ferrari for that 5 mins of glory while you panic about how you’re going to actually pay for it.

[@piotrmajewski5978]

@@pablosskates7067 Now all these dams and reservoirs cause massive floods. Constant GDP growth, corrupted officials piling debt to get performance bonuses had to backfire at some point. And as usual who has to pay? Middle class and poor people.

[@astrohawke4527]

You can never have enough high speed rail

[@SuikodenGR]

Exactly. It's always about status symbol, instead of living a meaningful life and live within their means.

[@madarah8533]

​@@astrohawke4527 of course you can. Its ridiculously expensive to build and maintain

[@leunam3434]

Life is unpredictable. The same situation happens all the time in the United States. I used to work in a factory in California. The owner moved the factory to China. I had to retrain myself as a paralegal to survive.

[@jharris3267]

I see the messages where people are sympathetic and I don’t get it. Everybody is having a tough time everywhere. They aren’t special. Besides they just reported a GDP of 5 percent. So these sad stories are all a con.

[@Axel_Carter]

The only ones making bank are the builders who build those factories etc. Oh and let not forget the moving companies who will never be out of jobs clearing up these factories😂

[@charleswomack2166]

As someone who is an American living in the US, I initially could not understand the stigma attached to being labeled a "debt-defaulter". But, since I am a student of China, I think I now understand. It's today's version of being branded a "counterrevolutionary(fan ger ming)".

[@ronnelacido1711]

How the hell the guy with the graying hair ended up in a debt of a billion? He must be so incompetent in business that he did everything wrong. His creditors must be kicking themselves in disgust for trusting him.

[@drzerogi]

If I were to speculate, I'd say that when the CCP began their "zero-Covid policy" and profits sharply declined, he took out loans and spent his own money to pay his workers and keep the business afloat in the hopes that he could weather the 3-year storm and return to pre-Covid profit levels; profits he could use to pay back the debt. That didn't work out.

[@Jack-It-UP]

Great reporting, thanks.

[@MoosesValley]

It's truly horrible to see good, hard working people suffering like this ... and it seems to be happening in lots of other countries. The only advice I can offer is: live within your means (be frugal), always put extra money aside (as much as you can) for emergencies, and build additional / part-time sources of income just in case you lose your main job.

[@bigpapa1954]

That sadly doesn't help when shit goes down due to external factors.

[@eragonfreedman9228]

They did it to themselves.

[@lance8080]

Worry about the homeless in America 🇺🇸

[@kennethvenezia4400]

Absolutely, and that doesn't mean buying Lamborghinis, Mercedes, BMW, excetera excetera. One high-end vehicle should suffice. With the money that was wasted on all those cars, it could've been used to buy time to get through the bad times.

[@mah7961]

Americans actually do worry about and try to help their homeless people. And are very open about it. How often does china ever report on it much less help the homeless in their country. But then again they have way too much pride to ever admit that they have a problem. Humility is very lacking over there.

[@Axel_Carter]

Too stay busy and not bored, millions of people all over the world learned to cook at home during the pandemic. So when lockdowns ended people realized that it's really stupid spending so much money in restaurants, when they can make the same food for the whole family at home for less money. So I'm not surprised that restaurants were hit so hard.

[@kanakasabhainatarajan7192]

True but in India it is the other way around. After the pandemic, people visit restaurants, holiday places and shopping malls so much that one is fed up of crowd on week ends. Trains and flights are always full. People think that one is mortal and it is better to enjoy savings.

[@kw9592]

Thank you for these videos

[@Dude-vb4ul]

I lived in China for 2 years, and I really miss the people there. The Chinese people are fantastic they just have a problem with a terrible terrible oppressive government. And from my understandings have had a terrible oppressive government for the past couple 1000 years.

[@gunsmoke9030]

If your worth that much why wouldn't you at least set aside enough to be comfortable and secure, i can't feel bad for someone who once had a single car that is worth more than a small modest home that would ensure uou could bounce back from any adversity.

[@aquafishsoup]

Instead of Xi asking young people to go to work, he should ask his daughter to post more pictures of her taste in luxury goods.

[@naakatube]

Crazy!

[@edbifulco]

Poor planning.

[@Axel_Carter]

Not only that, the pandemic showed people all over the world that they really didn't need restaurants and products they didn't need.

[@idrismelody]

With our daily curiosity of others glamorous countries, your channel shed light into the beautiful lies we are force to accept👍👍👍

[@Digmen1]

If exports are down due to off shoring and reshoring, real estate in collapse, local body debt crisis, malls closing. its going to get much worse. I am in the west and have been in that situation

[@josh09614]

Wait, they just said, an increase in spending along with GDP😂. Really?

[@tedzehnder961]

There could be two schools of thought. If bankruptcy in China was easier to declare, being able to separating business loans from personal assets , without being in legal trouble for your whole life , the banks would be forced to eat the bad loans and write them off as a loss , maybe banks in China should do their due diligence and examine the risk of a business and not allow loose credit.In most countries, collateral would be all that the borrower would lose and their personal credit rating would be damaged for a number of years which would be a red flag for loans in the future. In China it`s like they punish the borrower where they will never be a success ,even though the loss might have been totally out of their control due to market forces, health trouble or accident. Lenders bear some of the responsibility for bad loans as well. There have been times when a person failed once, but the next venture was a success and they became a taxpayer, employer and an asset to the economy. It sounds like in China, loans and money comes easy but you better not fail. It should be the other way around, loans should not come easy and banks should do a better job of identifying market trends and rating risks.China`s laws pressuring borrowers to be punished for failure and not the banks for dumb lending practices is not an even playing field. Easy money from banks is lazy lending by the management and loan officers not studying the borrower`s ability to pay is the problem

[@russelbrown6275]

Obviously the banks are using the law to force payment and the banks are preying on the uneducated young and old to offer them more loans than they can possibly afford to repay.

[@drzerogi]

Part of the issue is that these are state-run banks. The CCP doesn't want to let its people off the hook on what is, essentially, government loans. To have the take that it's - at least in part - the lenders responsibily for defaults, the CCP would be taking responsibility themselves...and the CCP never, ever wants to take responsibility for their own mistakes.

[@mitchy7051]

most of these failed businesses in China relied on heavily subsidized government loans, whether it be from corruption or highly leveraged loans from over inflated assets. What's great about China is the low barrier of entry to start a business however since most of these small businesses are under capitalized from the get go, whenever there is a downturn they simply can't sustain themselves.

[@mitchy7051]

China obviously didn't learn the dirty tricks from the Feds - the US is in the exact same situation however central banking repurposes those loans, classifies them as AAA debt, and forces the rest of the world to be the underwriter.

[@moastray5093]

Sabes que es serio cuando incluso las personas de alto estatus sufres tambien

[@scottgordon1781]

Hmm , so many want to be ' entrepreneurs ' where do you get training for that ? When I bought my house , was quite aware of the costs involved . interest rates back then were 25 % , 30 years ago :-) Paid off in less than 20 , put every spare $ into bond , reduce the interest cost . Now , my rates and taxes are much more than I paid on my bond . Glad I am not in China :-)

[@CultureoftheWorld]

Every human should see this

[@kelvinwong5800]

Problems of those business, entrepreneur fall due to over confidence, put all eggs into one basket. Too greedy, already multi millionaires , why still goes for all in, end up lose allwith huge debts disaster

[@IAmKAZMO]

This is pain... I hope and pray for my fellow mankind. 🙏

[@lostinseganet]

@10:55 prepare for registration procedures? What!?

[@Spoopball]

On average, it takes 2 years before a business sees profits, and it takes 10 years for a person to sees a profit from selling a house. Please, people need to be more financially literate

[@dannydorito2954]

is... is that the song from the ending of the hulk movie? LMAOOOOO

[@jomon723]

Just not sure if these people are real .....but good story

[@roadfry9015]

Instead of buying 1home, they bought more than 1. Due to easy loan and unavailability of any other investment opportunities, home investment was more attractive and increasing property prices, it made sense. After corona they lost income and also home prices crashed. They had mortgage payments, so when the economy opened, they cut other expenses, due to this market collapsed, again more people lost jobs.

[@RichDenman]

The look of crushed dreams seems to be a universal human facial expression.

[@nerdlingpodcast5639]

Oh yeah those materialistic things mean nothing now. Learning hard lessons. NFG

[@blue-phoenix115]

Feels so hopeless in China right now...

[@Velereonics]

what why would the bank share the debt with you? I don't understand is that because the bank is like a government entity? or is he saying like if the economy dies then you modulate the amount you owe essentially down with whatever the value is that was lost?

[@phnx4life]

"Perhaps it was the (plan)demic..."

[@Kimber-bz9fe]

In Australia we go broke too bad! You owe what you borrowed from the bank period the end!!! I don’t know how these Chinese citizens think they can borrow into the millions and be able to walk away!!! It doesn’t work that way regardless of the reasons why

[@HikigayaHachiman07]

I hate restaurant business...Not because of I hate sold my food or whatnot...It's just that there are TOO MANY restaurant business in my country that it has made me bored to find those restaurant because whenever I go, just a 1/2 Km distance, aaannd there it is...A restaurant that I've just found but not actually want to know what is the restaurant made food...And then a few more 1/2 Km distance again, different restaurant name but the same crappy food from the previous restaurant that I've visited... Y'know, this video has taught me about how is exactly my own town wants my skill to promote my service for...In the end, customer service or mechanical or electronic repair service or any business that promotes "service" is what my own town wants...

[@falco830]

Time to renovate our governments

[@iinrefna]

Man was flexing a RANGE ROVER 🤣🫵

[@muliyanto5097]

That’s why I don’t build business using loans

[@DJl3iohazord]

In the west, we have a saying: “when a man loses everything, he has no fear for he has nothing left to lose, and sometimes reasonable men must do unreasonable things…”

[@allykhan8594]

7:00 what a lovely moral woman!

[@radiomanze1296]

I'm guessing all the videos exposing gutter oil and cheap knockoff counterfeit food aren't helping

[@alrighty6898]

Their customers wouldn’t have been able to see those videos because CCP doesn’t allow them

[@mah7961]

The real deal issue with them is they have change their attitude and approach on everything. You have several generations there that really believe that you should be super suspicious of all foreigners. And be very deceiving to others and even your own kind. That cutting corners is the way to go. That they are always right about everything and never back down. Humility is something they really need to have. But they just proud to ever admit that.

[@atenas80525]

Highly informative video - its curious how different the Chinese system is from the West. The major standout is a grounding in Judeo-Christian values - like debt relief/forgiveness (jubilee from the OT)

[@mimosahoney5617]

More people ...more restaurants/ bakery shops...etc ... and people tighten their wallet by cooking at home!😔😔

[@lilnoni671]

Since the lab leak caused the pandemic and the government put the insane lockdown in, the government should also work with these businesses to forgive the debt that was brought on by the government!

[@ElysetheEevee]

This type of secondary pubushment feels extremely familiar to low-level penal issues in the US.... Being unnecessarily, and even doubly, punished for something where that much punishment doesn't fit the crime.

[@eragonfreedman9228]

Their word for humility is 谦逊 they should relearn this word

[@yaboibSLT]

I find it convenient that Canada's housing market started to cool down around the same time frame the Chinese housing bubble burst. Looks like major players stopped playing when they lost everything back home. I rarely see exchange students in their leased supercars anymore 😂

[@ChickenMcThiccken]

that 40 year old is very close to "fighting". he has another 20 plus years before retirement. THIS HAS TO BE!

[@Bacnow]

“I had billions and now I’m billions in debt” How can you be wise enough to become a billionaire and yet foolish enough to end up billions in debt?

[@kateryan9988]

Good.

[@artskytom2546]

Why every one there says that THEY INVESTED soo much money and they aren't so eager to explain who's money they invested. 99% of Those investments are money borrowed from banks and other financial institutions and afterwards those morons started to buy houses and expensive cars and now are surprised that their businesses failed... Pathetic.

[@postscript5549]

Realtors are quitting their jobs in the U.S.

[@porkyvonchop6458]

to all chinese people "its the WESTERN COMPANIES that gave you prosperity NOT THE CPP"

[@chrismarinucci5840]

You had nothing but debt, like your government . Wake up.Get out of the south China sea . Not yours.

[@amelierenoncule]

In China, it appears many of the "Lucky Ones", are those who died.

[@averagelifter]

Take bigger risk and larger business loans to buy multiple luxury cars and houses. Kind of hard to feel sorry when it is 100% greed. Stay humble, pay off cars, maximize cash flow and take calculated risks.

[@bluemist8737]

2nd guy... just last year (meaning 2023) he had everything but after 3 years of pandemic he lost everthing? When was the pandemic 🤔🤔🤔

[@FiringSquad81]

Nothing has gotten better since then

[@Have.An.AmicoDay]

Translation issue... he's originally speaking Chinese

[@sparky9327]

it's not the pandemic that caused business closures, it's that businesses cannot get loans to pay salaries (because the money were loaned to "Belt and Road" countries) 😄

[@andylin6560]

A fool and their money will soon part. "most businesses fail within the first year" I'm confused on how these people are complaining about failing in 6 months, that's the norm. You had a business idea and it didn't work, completely normal for any business owner.

[@rogerbartlet5720]

Such an unnecessary waste

[@gareth449]

I bet that a lot of these people saying that they had millions in assets , listed real estate as part of their portfolio , but some people in China are still doing ok , just look at how many China tourists there are in places like Thailand , Chinese tourists still make up their largest tourist number

[@jackiek]

$USD

[@PVFriends_VCAM50]

Why?

[@alrighty6898]

Ccp

[@sbgandalf5946]

They bit the hand that fed them after a self inflicted policy that failed.

[@ironaston9858]

Am I supposed to feel sorry for this washed-up rich dudes? Cause I don't.

[@Kededian]

The higher you climb the harder you fall.

[@Phoenix-N7]

You are all not the labels that society as forced on you. You are a human beings. Perhaps you lose these material items to understand your true worth. Not the worth of man. Understand your worth and love from God or whatever you believe. Know I have faith in you all. You are all my brothers and sisters of humanity. wherever you may be on this little orb. I smile for you. I pat you on the back and give you a gentle nudge forward. Live free as you were born, not to these false pretenders of power.

[@DegenGammaCom]

"And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale" - Thomas Jefferson

[@hanknyc]

If you ever find yourself printing money, earning millions, for God’s sake put $1 million into a trust or retirement account and forget about it.

[@mattanderson6672]

Rise up People of China

[@davidholder3207]

If you want banks to share your loss then you must accept that banks can share your profit.

[@kyrieeleison31]

Let this be a lesson. Never make accumulation of wealth your main reason for living.

[@jimmyyu2184]

I know there is an Asian E. Musk look alike, the guy at 15:40 can do Gilbert Gottfried...

[@postscript5549]

Thumbs up, but the podcast is about five plus minutes too long.

[@user-yq8qw9yg6e]

In the era of gold rush the business is selling shovels. I have 0 empathy for those rich Chinese people because we all know how they threaten the poor people when they literally swim in money.

[@allykhan8594]

China first capitalist recession can produce a large rebound

[@charlesgentry3758]

Sounds like bad decisions.

[@kitsunelee007]

With so many ppl homeless masses of them should storm a vacant houses in good shape, mostly vacant apartment buildings and begin living there as a way to keep out of the elements. If not groups of ppl should go to one of the Ghost Cities in the best shape and work on the buildings to make it into a livable shelter. Anything to give ppl a relatively safe shelter which is especially important if you have children. If not go into the countryside and take over a place. If a large enough group of ppl do it the police cannot arrest everyone. I upstanding the officals will be angry but these ppl already have lost everything. What is the use of being alive knowing if you are over 35 you have no chance of work, and young highly qualified ppl cannot find a job. China IA a land where is you have no job, money, assets, or connections the chances of having any stable employment and extremely modest apartment is out of the question. The Chinese ppl MUST overthrow the CCP to literally save themselves.

[@kwanhofu2968]

Really want these people got saved by jesus Chris

[@ericsteinhauer3991]

Very sad

[@mightT1]

being entrepreneur in china is like trying to do business in mafia controlled area... you sh!t out of luck. just keep your money and move far away.

[@mrallan8063]

For the guy in the garage... go see a dentist.

[@Cedartreetechnologies]

Dayyyng. I really feel for those guys. And you know it is coming to the USA.

[@santhiumcic]

Is this video even real?