This data looks a few years old and questionable. Anyway, my opinion (China on-off since 2001, multiple businesses): 1. The government recently banned using pe

This data looks a few years old and questionable. Anyway, my opinion (China on-off since 2001, multiple businesses): 1. The government recently banned using personal electronic payment accounts to receive business funds (affects 2022 only). 2. To be listed on an ecommerce site you need a company. 3. Government handouts. To obtain local government handouts you have to put forward a corporate identity as a potential employer to justify receipt of funds. There's a lot of funds to receive, and all sorts of excuses for doing so. Some people's entire business is just a front for handouts, especially many "technology" businesses. 4. Face. If you are unemployed it's easier to maintain appearances with a company, even if you're not doing any business. 5. If you run your own company you control how much income is declared, which potentially increases profits at the expense of the tax man. A huge proportion of China's economy runs on the slightly cheaper ordering option of "不要发票" (don't need a tax-receipt). This is not a huge thing since it's rife in large companies too but it does allow for back-scratching deals that are of greater utility in a slowing economy (ie. now).