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So-called 'laolai,' who go beyond the scope of malicious debtors, are treated as criminals in China. The police also show no leniency if possible. The bare face of China, a debt-recommending world of debtors, is just disastrous like this. / AI-generated image.

China is analyzed to be rushing toward a debt superpower, even mass-producing super debtors with debt enough to surpass the GDP (Gross Domestic Product) of most middle-power nations. If things go wrong, the possibility of facing an unprecedented catastrophe due to this does not seem entirely absent.

According to the report on the 29th by Beijing sources well-versed in the Chinese-speaking world economy, it is not greatly wrong to say that China looks down upon the United States or Japan when it comes to debt. If the so-called triple debt combining national, corporate, and private debt as of the first half of this year reaches around 300% of GDP, no more long explanation is necessary.

Particularly, the private debt that increased explosively while taking a direct hit from the real estate price crash that started several years ago is tremendous, to the extent that the expression terrifying is not an exaggeration. According to some private-sector statistics, it is estimated to have exceeded a total of 200 trillion yuan (over 45,400 trillion won) as of the first half of this year. It is approaching around 140% of GDP. When it reaches this level, it is not greatly wrong to say it is fierce enough to swallow a cow.

Under these circumstances, the birth of super debtors should be considered natural. Representative figures can also be picked. Founders Xu Jiayin (68), Yang Guoqiang (72), and Wang Shi (76) of Evergrande, Country Garden, and Vanke—who were once giants in the real estate industry—seem to have to endure the humiliation of becoming the main characters. Officially, they are known to hold debts of 2.58 trillion yuan, 1.69 trillion yuan, and 1.35 trillion yuan respectively. It can be said to be a scale larger than or similar to the GDP of most middle-power nations in Europe or the Middle East.

Even, if all of their debts are combined, it can approach the wealth of Elon Musk, the CEO of Tesla and SpaceX, who is the first trillionaire of mankind. It should be said that the dimension is completely different from the super debtors of neighboring South Korea or Japan. If the debt of Aoyuan Group founder Guo Zining (65), who ranks 10th in the debtor rankings, is at least 300 billion yuan, it can definitely be said so.

The reality where 800 million people and 100 million people—well over half of the Chinese population—are debtors and malicious debtors respectively also seems to need to be mentioned. In the worst-case scenario, they are registered as 'laolai' (blacklisted individuals), numbering around 9 million, and must face legal regulations in many aspects. Under a market economy, it can be said that they completely become vegetative persons.

Currently, unlike the announcements or assertions of authorities, it is difficult to say the Chinese economy is very good. No, looking at the youth unemployment showing no signs of improvement at all or the phenomenon of 'qianhuang' (money drought) in the market—namely, the hardening of money arteries—it seems okay to assert that it is considerably difficult. The reality where the so-called 'beggar sets' of ridiculous prices are trending at various restaurants across the country should certainly be considered not for nothing.

Naturally, the economically weak driven to extreme situations and businessmen or individual entrepreneurs on the brink of bankruptcy have no choice but to rely on debt. This means that a society recommending debt continues. It seems to be without much strain to assert that the path for China to escape from a world of debtors is distant.

                                                                                                           Hong Soon-do