China’s Business Meltdown: China’s Tycoons Hit Hard by Economic Crunch

A wave of bankruptcies among China’s business tycoons is sweeping the already struggling Chinese economy. It seems that the trend of employees protesting against business owners for overdue wages will become more frequent./ Jingji Ribao.

The Chinese economy, already far from being in good shape, is now swept by a fierce wave of bankruptcies among business tycoons. In particular, bankruptcy has almost become a daily occurrence for CEOs of companies related to the real estate market.

The fact that the Chinese economy is quite tricky can be seen in the countless individuals and companies facing bankruptcy. The number of debtors, known as Laolai, who cannot repay large amounts of debt due to bankruptcy or intentional default is astronomical.

According to reports from various media, including Jingji Ribao on the 12th, the number of Laolai is estimated to have exceeded 10 million as of the end of last year without difficulty.

Even the famous business tycoons who once had a heyday controlling the local economy from all over the country are not in a good situation. Many are facing challenging circumstances, with some even being driven to the worst-case scenario of bankruptcy.

A prime example of this is the embezzlement of Wang Wenyin (55), the founder of the Zhengwei international group, who was once called the “World Copper King.” He was once a famous tycoon in Shenzhen, Guangdong Province, where his company is based, and throughout China. However, the company has recently been on the verge of bankruptcy, leaving it in the worst possible situation of not paying its employees.

It’s no wonder they were sued by banks nationwide for their inability to pay their unimaginable debts. It is predicted to be quite challenging to recover from the current situation. In the event of bankruptcy, he will not be free from criminal liability.

Lu Zhiqiang (72), chairman of Panhai Holdings Group, famous for its real estate and financial business, should also be mentioned. The fact that his company was delisted from the Shenzhen stock market earlier this month speaks volumes about the situation, putting his current position far beyond uncomfortable.

The case of Yao Zhenhua (54), chairman of Baoneng Investment Group, is even more outstanding. He was recently assaulted by employees who hadn’t received their wages, to the point where his glasses were broken. His investment in the automotive business has brought it to bankruptcy. In addition, the founders of real estate giant companies, Hengda (Evergrande) and Biguiyuan (Country Garden), Xu Jiayin (66), and Yang Huiyan (43), who are facing default, are no different. In Xu’s case, he was even detained by the authorities.

According to a comprehensive outlook from foreign media, including Bloomberg, the Chinese economy will likely face difficulties for the time being. It’s no wonder that so many companies, known and unknown, including real estate companies, are on the brink of bankruptcy. The trend of business tycoons’ bankruptcies seems to be just the beginning.