Millions of Chinese individuals are facing debt and loan defaults, with a record 8.54 million blacklisted from various economic activities. The economic downturn, exacerbated by the COVID pandemic and China's strict lockdowns, has led to a surge in defaults. Electronic payment platforms like Alipay and WeChat have become essential, making life difficult for those blacklisted. The Bank of China reported a significant increase in overdue unpaid credit, and the collapse of the property market has further impacted individuals' wealth and ability to pay mortgages. Private borrowing between enterprises has also declined, contributing to the debt crisis.

China's manufacturing activity continued to contract in July, with the Caixin PMI index dropping to 49.2, indicating a slowdown in economic recovery. Employment in the sector worsened for the fifth consecutive month due to limited market demand. The youth unemployment rate for 16 to 24-year-olds hit a record 21.3%, but some argue the actual figure could be as high as 46.5% when considering non-working, non-student youth. Low wages contribute to the employment crisis, with many young people unwilling to take on demanding jobs with poor pay. Political factors, including government policies towards private enterprises and the US-China trade war, are exacerbating the unemployment issue. Efforts to attract private capital to national projects and improve market access have been announced, but skepticism remains about the government's commitment to supporting private businesses.