Why Did Mass Closures and Unemployment Explode in 2025?

2025For countless people living in confusion and anxiety, it has undoubtedly been a year of pain and transformation. The intense clash between the Chinese and American economies, the internal struggle of human thought, the shift of new and old economic drivers, the reshuffling of global regional powers... all indicate that starting from this year,Human civilization is entering a period of "operating system upgrade," during which various disruptive changes will occur globally.

In China, due to the culmination of major infrastructure projects, real estate bubbles, overcapacity, and the industrialization of education and healthcare, combined with unfavorable factors converging simultaneously, the pressure of survival is suffocating. As a result, the individual's intuitive feeling is one of intense turbulence and strong anxiety.

In the manufacturing industry, with the end of the era of the world factory and the outbreak of structural economic contradictions both domestically and internationally, a large number of enterprises with outdated production capacity or market oversupply will be mercilessly eliminated. These are objective realities that cannot be changed by human will. Therefore, I hope everyone strengthens their inner resilience and absolutely avoids making investments beyond their capacity.

On July 31st, Fenda Toys (Shenzhen) Co., Ltd. issued a closure notice, stating that the shareholders' meeting has decided to dissolve the company and establish a liquidation team. This marks the official commencement of bankruptcy liquidation proceedings for the toy company that has been operating for 14 years.

On July 31, Dongguan Malata Vacuum Hardware Heat Treatment Co., Ltd. officially ceased operations. Established in 2006, the company admitted in its announcement: "In the face of a declining economic environment and consecutive years of losses, the company attempted to raise funds through loans and bank financing to maintain normal operations. Unfortunately, these efforts were unable to reverse the overall downturn of the enterprise."

Malata Vacuum has been rooted in Dongguan for 19 years. As a company specializing in metal heat treatment backed by Malata Electronics, its former glory speaks for itself. However, as a subsidiary relying on the support of its parent company, it is like a child who never grows up, and naturally finds it difficult to survive in the fierce market competition.

On August 8th, rumors spread that Guangzhou Kaiyi Paper Packaging Co., Ltd., a leading factory in the post-processing of gift boxes, suddenly declared bankruptcy due to a broken capital chain. Two to three hundred employees were anxious and collectively demanded their unpaid wages.