‘China is addicted to investment’: Sridhar Vembu questions whether the Bejing model is nearing its end

Zoho SRIDHAR VEMBU raised the red flag on the economic model of China, describing it “mainly defective”. In a publication on X, VEMBU criticized the pushing of China, which is unavoidable to invest at the expense of local consumption, on the pretext that “exporting it at all price” forces other countries to import in the surplus – a system that can doubt the survival for another 25 years.

VEMBU’s comments have been operated through a publication that highlights how China has not yet reflected its consumption share since the economic reforms of ZHU Rongji and the entry of the World Trade Organization.

Zhu Rongji reforms have reshaped the Chinese economy by restructuring state -owned companies, updating the financial sector and marketing the market. Zhuada Fangxiao’s policy has united the large state -owned companies (SOES) with the privatization of smaller companies, which improves efficiency, but led to job losses. In banking services, asset management companies created poor loan management and encouraged banking privatization to provide market competition.

The ZHU tax sharing system, similar to the American Federal Temple, strengthened central revenues and simplified financial management.

On the Global Front, ZHU played a fundamental role in entering the World Trade Organization in China in 2001, opening markets and reducing commercial barriers. It also reduced the customs tariff, which strengthened the Chinese economy, which is driven by exports. At the local level, it is to the bureaucratic half, addressing inefficiency and corruption. Although his policies sparked a great demobilization, they settled on inflation, strengthened the financial sector, and feed the rapid economic growth, which strengthens China’s position as a global power.

Vibbo called that “the original sin” in China has argued that the country has created a structurally unbalanced economy, which only survived through endless debts.

“The only way this system has” balanced “is to increase debts to an endless (and thus money, because the money itself is the debts of another person in our money-backed system-nothing nothing). In a critical system in Snerer, import countries may literally run out of money (gold)” so that they cannot continue to import. “

This is not the first time that VEMBU seems to have a warning to economic imbalances. He has also warned of excessive dependence in India on this, on the pretext that its dominance “absorbed all oxygen” of other critical industries such as manufacturing and basic engineering.

“When the money flows in a industry very quickly, it absorbs resources and can leave us with less capabilities than before in the other critical sectors that are neglected during the flood of money,” and comparing the financial bubbles with “sudden floods.”

His remarks struck a tendon online, which sparked discussions about the excessive talent concentration at the expense of other fields. One user expressed, “No one child wants to go to unstable hardline engineering branches unless they have other options. Long -term damage to the real neglected manufacturing.”