China’s Economic Crisis Deepens, Social Risks Grow Amid Mass Layoffs, Bankruptcies

News Analysis

In light of recent mass layoffs and bankruptcies in China, experts warn that China’s economy is entering a deep recession, possibly a depression, with rising unemployment and systemic risks that could trigger large-scale social instability.

On June 19, Chinese electric vehicle (EV) company Hozon Auto filed for bankruptcy, according to the Chinese Communist Party’s (CCP) state broadcaster CCTV. Another state media report that drew widespread attention on Chinese social media is the mass layoffs at a leading online services platform, 58.com.

The popular platform, known for helping users find housing, jobs, and domestic services, has reportedly initiated mass layoffs affecting 20 percent to 30 percent of its workforce, close to 10,000 employees, mostly from its technical and regional service departments. The news quickly trended on Chinese social media.