China's Telecom Companies Face Rising Bad Debt Amid Enterprise Business Challenges
China's major telecom operators are experiencing a significant increase in unpaid bills and bad debt from enterprise and government customers, which were previously their primary growth drivers. By the end of 2025, the three main telecom companies in China were owed a total of 219.9 billion Chinese yuan (approximately $32.3 billion), marking a 31% increase from the previous year. This surge in debt is nearly four times the amount owed five years ago. China Telecom saw the largest increase in accounts receivable, with a 36% rise, while China Mobile and China Unicom reported increases of 33% and 14%, respectively. The bad debt provisions also rose significantly, with China Mobile accounting for over half of the total. This financial strain comes after a period of robust demand for digital transformation services, particularly from local government agencies and utilities. 
