Chinese People Are Fleeing: What’s Happening to the 'Chinese Dream'?

The economic boom that once propelled China to global superpower status is now fading. The shadow of economic recession, social unrest, and harsh policies has forced many people, from wealthy millionaires to poor workers, to make the heartbreaking choice. Leave their homeland. But what is really driving China, once expected to be the future of the global economy, into a spiral of bleeding assets and people? The answer may lie beneath the glamorous shell of a superpower. The rich are leaving, and the poor are looking for a way out. According to Henley and Partners, 13,800 Chinese millionaires left the country in 2023, and the number rose to 15,200 in 2024. Familiar destinations such as the US, Canada, Singapore, and Europe attract the rich not only because of investment opportunities, but also because of their clear legal systems and less risky business environments. Singapore, a familiar haven for the Chinese elite, has recently tightened regulations on mainland money flows, showing that the instability at the root has alarmed the world. But this is not just a story of the rich. Even ordinary workers who do not have significant assets are fleeing despite the danger. This reflects the severity of the situation, and the lack of confidence in the country's future. China is facing a comprehensive economic and social crisis, plunging millions of people into a spiral of frustration and instability. The days of double-digit growth are over, and now China's economy is growing at around 4-5% per year. For a country of China's size, this is not enough to create jobs and improve living standards as it did before. The main reasons include rising production costs, falling foreign investment, and the severe consequences of the prolonged zero-COVID policy. Factories that were once a source of pride are now deserted, as international orders are redirected to countries like Vietnam and India. More than 20% of young Chinese are unemployed, meaning 1 in 5 young people is unemployed. Career dreams that were once a source of pride for the previous generation have become a psychological burden for young people. Many choose to lie still, give up their ambitions, and live a moderate life to avoid pressure. A sense of hopelessness is widespread as they realize that the opportunity for advancement, homeownership, or simply a stable life is now too far away. Chinese people, traditionally big consumers, are now saving more than they spend. Uncertainty about jobs and incomes has left them fearful for the future, forcing them to tighten their belts. This has weakened an economy that relies heavily on domestic consumption. Meanwhile, the gap between rich and poor is widening. The rich still spend lavishly, but the middle class and ordinary workers struggle with rising prices and falling incomes. Real estate, once the heart of China's economy, has become a debt bomb. Home prices have fallen 8% from their peak, leaving millions of people with debt from home purchases. Real estate giants like Evergrande, once symbols of success, are now drowning in debt. The collapse of the real estate market has dragged down a series of related industries, from construction to interior design. For many, the home they once hoped would be an asset has become a dead end. The economic downturn and tightening control policies have widened the gap between rich and poor. The wealthy have quickly moved their assets abroad, seeking safety in places like the U.S., Canada, and Singapore. Meanwhile, the middle class and ordinary workers have become increasingly mired in debt and insecurity. In addition, the Chinese government has tightened its control over key industries such as technology, finance, and education. Even once-successful icons like Jack Ma have not escaped its grip. His infamous speech in 2020 led to his mysterious disappearance for three months, a stark reminder that personal safety and freedom are always luxuries on the mainland. For those who are not wealthy, leaving China is an even more dangerous journey. Xiang Wei, a 35-year-old man who lost everything during the pandemic, had to travel through multiple countries to reach the U.S. in the hope of restarting his business. His story is a testament to the impasse faced by the middle class and ordinary workers. Similarly, Wang Xingwei, a former small business owner in Wenzhou, has had to trade everything, from property to his family's safety, to cross the border into the U.S. The journey through the jungle, facing robbery and risking their lives, is the price they must pay in exchange for opportunities in a new land. These stories are not just isolated incidents. They reflect an unprecedented and growing trend. According to statistics, the number of Chinese illegal immigrants to the U.S. in 2023 exceeded 37,000, a tenfold increase from the previous year. Notably, as legal routes have tightened, these migrants are also willing to risk crossing jungles and deserts, facing the threat of death. These images do not resemble a country hailed as a superpower, but rather a society gradually crumbling under internal pressure. With the massive migration of people, both legal and illegal, China faces its biggest question. Is this the beginning of a full-blown recession or just a temporary period of hardship? Economists say that when trust in the government and social system collapses, recovery will require not only economic improvements, but also a shift in leadership thinking. 2025 could be a major turning point for China. Can it regain the trust of its own people, or will it continue its slide into instability? Meanwhile, Apple has quietly shifted its supply chain to Vietnam and India, leaving an irreplaceable gap in China. In Suzhou, a city once known as the most powerful provincial manufacturing hub due to its abundant foreign investment, the situation is dire, with 20,000 companies closing in 2024 alone. Each company that leaves not only takes billions of dollars with it, but also leaves hundreds of thousands of workers unemployed. Once-bustling shopping malls are now deserted, with many stores displaying for-rent signs, but finding no interested tenants. Even a first-tier city like Shanghai is not immune to this trend. According to public data, 12,000 companies in Shanghai closed in the first half of 2024. Tech giants like SAP and IBM are no longer symbols of development, but rather the clearest signs of a shaky economy. Three main reasons have been identified to explain why foreign corporations are leaving China. First, rising political risks. Laws such as the anti-espionage law and the anti-Taiwan independence law have made foreign investors feel they could be targeted by the government at any time. Stories of foreign employees being detained or prosecuted have become increasingly common, making the business environment in China less safe. Second, declining consumption. With the domestic economy weakening and consumer spending falling, foreign companies that once relied on the billion-person market are finding it harder to make profits. Many Chinese consumers are even choosing to boycott foreign goods amid a rising wave of nationalism. Third, nationalism and domestic preferential policies. Domestic companies enjoy government protection and preferential treatment, while foreign companies face blatant discrimination. This creates an unfair competitive landscape, forcing large corporations to seek fairer markets. The withdrawal of foreign companies not only affects the working class, but also pushes even highly educated individuals into unemployment. Those who graduated from top universities, expecting a solid career, now face joblessness and an uncertain future. Factories that were once the pride of China are now abandoned, and workers are forced to settle for temporary jobs or fall into poverty. China is facing a new confrontation with President Trump. On January 20, 2025, President Donald Trump returns to the White House, an event that shocked the world. But for China, this is not just a notable day. It also marks the beginning of a difficult confrontation. If, during his first term, Trump made Beijing suffer through a trade war and tough policies, his return has now raised concerns about an even fiercer period. During the election campaign, Trump promised to continue hitting China hard, from trade and technology to military affairs. One of the statements that caused significant concern in Beijing was his plan to impose tariffs of up to 60% on Chinese goods. This is not an empty promise. In his previous term, the tariffs he imposed severely damaged the Chinese economy, forcing many international businesses to leave the country in search of more stable markets. But the issue extends beyond trade. Trump also pledged to curb China's technological rise, particularly targeting companies like Huawei and TikTok, citing national security concerns. His new administration is expected to continue imposing bans and sanctions aimed at limiting Beijing's access to high technology. Beijing prepared early for Trump's return, sending its vice president to his inauguration, an unprecedented gesture in U.S.-China relations. This olive branch signals a willingness to engage, alongside a shift to a softer diplomatic approach. China seeks better ties with U.S. allies like Japan and the EU while easing tensions with Washington. But is this change genuine or just a tactic to navigate Trump's pressure? The U.S.-China rivalry now extends beyond trade to global influence, from the Pacific to Africa, technology to geopolitics. Trump's support for Taiwan, including F-35s and Patriot missiles, is a direct challenge to Beijing. How will China respond? It may boost investment in developing nations, expand the Belt and Road Initiative, or strengthen ties with U.S. allies. But can it withstand an increasingly assertive U.S.? China's economy is currently experiencing a severe recession, widespread unemployment, and numerous business bankruptcies. Many stores now sit deserted, with the once-vibrant scenes of shopping centers becoming a thing of the past. Following the collapse of Carrefour, one of the top three supermarket chains under Suning Group, stores belonging to the famous supermarket chain RT Mart and the renowned Japanese Isetan department store chain, which has been operating in Shanghai and Tianjin since 1997, have announced their closures. Metro China's Hutai Road store has also gone out of business and closed. The famous Shanghai City Hypermarket, City Shop, which specializes in distributing high-end items and boutique brands, has also announced its closure. Recently, China's former retail giant, Suning Group, also failed to withstand the impact of the economic recession, and three of its subsidiaries have entered the bankruptcy reorganization process. The announcement released by the China National Enterprise Bankruptcy and Reorganization Case Information Network shows that the bankruptcy and reorganization case information, along with the first creditors' meeting announcement for Suning Appliance Group, Suning Holdings Group, and Suning Real Estate Group, has been published. The first creditors' meeting will be held online on April 2. The three companies were accepted for bankruptcy reorganization by the Nanjing Intermediate People's Court on January 26, with case numbers 2025, Su-01 Bankruptcy 2, 3, and 4, respectively. According to the announcement from Suning.com, the companies' shareholders, Suning Appliance Group and Suning Holdings Group, received the civil ruling delivered by the Nanjing Intermediate People's Court on January 26, ruling to accept the reorganization application filed by relevant creditors against the above shareholders. This means that this former star enterprise in Jiangsu Province has entered the bankruptcy reorganization process. With the rise of China's e-commerce industry, Suning developed from an air-conditioning specialty store into one of China's top e-commerce companies in its early years, enjoying a period of great success. However, it is now heavily in debt. According to the September 2023 annual report, Suning Appliance has total assets of 124.96 billion renminbi, a loss of 5.703 billion renminbi, and total liabilities of 134.479 billion renminbi. Suning Group's predicament has a long history. In September 2020, Suning, as the largest strategic investor of Evergrande Group, invested 20 billion RMB. The investment failed to be recovered on schedule, which became the trigger for Suning's liquidity crisis. Under the negative impact of the increasingly widespread economic recession in mainland China, some large supermarkets have closed stores in a desperate attempt to cut off their arms to survive, while others have imitated other supermarket brands to make drastic changes. More supermarkets have begun relocating to third- and fourth-tier cities. China's job search chaos, a man left his job. Three years ago, and was left with a huge debt of 3.2 million. On February 8th, a Chinese man was forced to become the legal representative of a company in order to find a job. Three years after leaving the company, he inexplicably took on a debt of 3.2 million yuan for the company, and the incident became a hot topic on Weibo. According to Elephant News, on January 17th, Mr. Shang, who was working at a construction site in Jiangwu, Liaoning, suddenly received a message that his WeChat wallet had been frozen by the judiciary. He contacted the Zhengzhou high-tech zone court by phone. To understand the situation, Mr. Shang went to Zhengzhou on January 20th and learned that the reason he had received the court summons was because of the company he had previously worked for. Mr. Shang said that in 2020, after three months of internship at Wuhan Kundayitong Trading Club in Lantide, hereinafter referred to as Wuhan Kundayitong, he was informed that he could become a regular employee. However, the company required him to be affiliated with the legal representative of the Shenzhen branch to obtain the position. If he refused, he would not be able to join the company. The company's human resources department assured him that all employees were affiliated with the company, and there was no need to worry. At the time, Mr. Shang had been unemployed for a long period, so he agreed to the company's request and became the legal representative of Shenzhen Yuancheng Trading Club Lantide, hereinafter referred to as Shenzhen Yuancheng, holding 80% of the shares. In 2022, Mr. Shang resigned from the company and requested to be removed as the legal representative of Shenzhen Yuancheng. However, in April 2023, he discovered that he was still listed as the legal representative. So I reported it on the personal tax app, and then in July, I found that the legal representative had finally been changed. Mr. Shang originally thought the matter was settled, but he never expected that three years after his resignation, he would be held responsible for a massive debt of 3.2 million yuan for Shenzhen Yuancheng. According to reports, in 2022, Zhengzhou KFC Corp. Ltd. signed a 3.2 million yuan lease contract with Shenzhen Yuancheng. However, after receiving the payment, Shenzhen Yuancheng failed to deliver the store as agreed. In 2024, KFC Zhengzhou sued Shenzhen Yuancheng, but found that the company had no assets available for execution. As a result, in December 2024, KFC Zhengzhou filed an additional motion to hold 10 individuals, including Mr. Shang, accountable for the debt. I know being a legal representative carries risks, but I never imagined the risk would be this severe, Mr. Shang said. Even if I work hard for a whole year, I can only earn 70,000 to 80,000 yuan. I have no idea how I can possibly pay off 3.2 million. He said that his wife had just given birth to a baby, who was only four months old. He was already in debt from buying a house for marriage, and now he was entangled in a lawsuit with a massive debt of 3.2 million yuan looming over him. In an emotional interview, he choked up, saying he couldn't face his wife and child and didn't dare to go home for the new year. After the incident, Mr. Shang reached out to many former colleagues from Wuhan Kundayatong. It turns out many people had the same experience as me. Many former colleagues were also burdened with millions in debt. This incident drew significant public attention. Some netizens commented, China's employment chaos is beyond imagination. Others said, this must be a fraudulent company. They planned everything from the day you joined. It looks like this kind of lawsuit will be hard to win. One netizen remarked, the key is knowing the right people. I had a former colleague who was also tricked by his previous boss and ended up owing hundreds of thousands. Later, he sought help from a distant relative who was a city official, and the issue was resolved within a week.