Not just China, It's a global issue right at this moment! But it's highly unlikely that bitcoin will be any help to this! The simple reason is the consumer driven economy where bitcoin adoption rate is next to zero! We can't really buy any real things using bitcoin, certainly not in a country like China!

I remember, my uncle wanted to buy a scooter 23 years ago. He had to pay in hard cold cash because automotive loan was an alien word that time! Today if I want to even buy a TV, I don't require to pay anything upfront as 100% loan is available! I will just have to pay equated monthly installments! So the buying habit of consumer is changing drastically as well! Result - more household debt!

Bitcoin comes nowhere as a solution to it! It's our own buying behavior that is changing due to the easy availability of loans. Unless we change our outlook, or a government policy prohibits such practices, nothing's gonna change and we will continue to submit ourselves to these loopholes of a debt driven economy!