Why so many Chinese are drowning in debt

THE RISE of a property-owning, entrepreneurial middle class in China has transformed its cities this century. It has helped to drive consumption in the world’s second-largest economy. In May retail sales grew 6.4% year on year—the fastest pace since December 2023—helped by state subsidies aimed at reviving consumers’ enthusiasm. The government has even cautiously promoted borrowing in past years. But all this has created new risks. Along with car-jammed streets, glitzy restaurants and vast malls has come a massive, invisible change, no less far-reaching: soaring household debt.