Major Chinese Corporate Failures 2021-2025 | Generated by AI
Question: What are more major company failures or collapses in China in recent years?
Answer:
Building on the previous examples, here are additional notable company collapses and distress cases in China from 2021–2025, primarily in the property, electric vehicle (EV), shadow banking, and other sectors. The ongoing property crisis remains the dominant driver, with thousands of smaller developers failing, while overcapacity and funding droughts hit EVs and tech startups.
Property Sector (ongoing crisis, thousands affected):
- Sunac China Holdings: One of China’s largest developers, defaulted on offshore debts in 2022–2023, underwent major restructuring amid massive liabilities (over $150 billion at peak distress).
- Fantasia Holdings, Sinic Holdings, Modern Land, Kaisa Group: Multiple mid-to-large developers that defaulted in 2021–2023, leading to restructurings or liquidations as sales plummeted.
- China Vanke: State-backed giant faced severe liquidity issues in 2024–2025, posting losses, bond repayment struggles (e.g., seeking extensions on $285 million bonds in late 2025), and potential takeover/reorganization risks, though avoided full default so far.
- Broader trend: In 2023 alone, nearly 19,000 real estate companies went bankrupt, per court data.
Shadow Banking and Finance:
- Zhongzhi Enterprise Group: Major shadow bank declared insolvency in late 2023 and filed for bankruptcy liquidation in early 2024, with ties to property lending exposing systemic risks.
Electric Vehicles and Manufacturing:
- Hengchi (Evergrande NEV subsidiaries): Two subsidiaries forced into bankruptcy in 2024 amid overcapacity; parent aimed for 1 million sales by 2025 but sold under 1,400 in one year.
- HiPhi (Human Horizons): Luxury EV startup halted production in 2024 due to funding shortages.
- WM Motor: Filed for bankruptcy after failing to secure capital.
- Broader EV shakeout: Around 400 Chinese EV companies ceased operations from 2018–2025, with only ~100 remaining active by 2025; consolidation expected to leave fewer than 50 by 2030.
Other Notable Cases:
- Xiangdixian Computing Technology: Semiconductor startup reportedly collapsed in 2024 amid cash crunch and legal issues, dismissing nearly 400 employees (later denied full dissolution).
- Overall startup ecosystem: New company formations plunged ~98% from 2018 peak (51,000+) to ~1,200 in 2023, reflecting dried-up VC funding, regulatory pressures, and economic slowdown.
These failures underscore China’s shift from debt-fueled growth, with rising bankruptcies (courts handled ~29,000–30,000 cases in 2023–2024) but often managed restructurings to minimize contagion.
References:
- Chinese property sector crisis (2020–present) - Wikipedia
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[China’s manufacturers are going broke The Economist](https://www.economist.com/business/2024/08/08/chinas-manufacturers-are-going-broke) -
[Shadow bank Zhongzhi files for bankruptcy CNBC](https://www.cnbc.com/2024/01/08/zhongzhi-latest-casualty-of-chinas-deepening-debt-and-property-crisis-.html) -
[400 Chinese EV companies ceased operations between 2018-2025 EVBoosters](https://evboosters.com/ev-charging-news/400-chinese-ev-companies-ceased-operations-between-2018-2025-only-a-few-will-dominate-towards-2030/) -
[China Vanke Gets Temporary Lifeline The New York Times](https://www.nytimes.com/2025/12/22/business/china-vanke-real-estate-default.html) -
[China’s murky bankruptcies expose hazards Reuters](https://www.reuters.com/world/china/chinas-murky-bankruptcies-expose-hazards-foreign-investors-2025-04-15/)