China's venture capital sector has experienced a dramatic collapse, with the number of annual start-ups plummeting from 51,000 to just 1,000. Venture capital investment has similarly declined from over $100 billion to near zero. This downturn is attributed to high-handed state intervention, which has driven investors and entrepreneurs away. The entrepreneurial spirit in the country is described as 'dead,' and the sector has been likened to a 'debt-chasing monster.' The impact of political and economic pressures has been profound, leading to a significant reduction in new company formations, with a 98% drop. Data provider IT Juzi reported that the number of companies being founded has dropped 99.5%.