The so-called “debt influencer” is on the rise in China. It is a method of attracting attention and earning advertising revenue by posting Vlogs related to one’s debts and reviews on social networking services (SNS).
The British weekly The Economist reported this phenomenon in a recent issue, saying that debt content is spreading among young people.
Behind this are high unemployment, economic downturn, and rising debt due to overconsumption and excessive loans. According to economic analyst Gabekal Dragonomics, about 25 to 34 million people are currently in default in China. This is a double figure from five years ago. In fact, a number of videos such as “I drove a Bentley and owed $7 million” are posted on China’s short-form platform “Dowin.” Many of them exaggerate the amount of debt and use it as content. An office worker in Shanghai said, “There are cases where the debt is exaggerated as 100 million yuan to increase the number of followers.”
However, most debt influencer are reportedly under pressure to repay debts without making a profit. Debt collection companies demand money through a “contact bombing” method that even contacts family members and acquaintances, and more and more people complain of mental pain.
In this regard, the Economist explained, “There are also employment difficulties and unemployment problems, but there are many cases where young people are in debt due to excessive loans and overconsumption.”
The Chinese government announced measures to ban abusive language, threats, and misuse of personal information in the process of collecting debts in 2023. However, there has been no significant change due to loopholes in the Personal Information Protection Act and lack of effectiveness of regulations. The debtors’ association, the debtors’ association, said, “The threatening behavior of collectors continues.”
SAM KIM
US ASIA JOURNAL
