New Delhi, May 6 (IANS) China has pushed mercantilism to the extreme when it comes to producing steel, and the day is not far when this approach will destroy Chinese civilisation, IT software company Zoho’s CEO Sridhar Vembu said on Monday.
Mercantilism is a nationalist economic policy designed to maximise exports and minimise imports for an economy.
Replying to Michael Pettis, American professor of finance at Peking University in Beijing and a nonresident senior fellow at the Carnegie Endowment for International Peace, Vembu said that anyone who “truly cares for the longevity of Chinese civilisation can see how mercantilism would destroy it”.
China produces roughly 55 per cent of all the steel in the world.
“This is mercantilism pushed to the extreme. This obsession with exports is costing the Chinese people themselves dearly, by overworking their people, not to mention pushing other countries into debt,” Vembu argued.
What China accumulates in return is the debt of other nations, and that is “fool’s gold” because the debt can never be repaid.
“Repaying means China has to import much more than it exports for a period, which the Chinese government won’t permit,” the Zoho CEO said.
Pettis had posted on X, quoting a South China Morning Post article titled “China’s steel industry risks ‘falling off a cliff’ as overcapacity concerns point to the end of an era,” that China’s steel industry has become a stand-in for the overall economy, with growing supply facing declining domestic demand.
Vembu said that Japan and South Korea have “run this movie”.
“It ends in demographic suicide because young people, overworked and over-concentrated into giant cities, facing high housing and educational costs, have no time or energy for children. Civilisational energy fades,” he warned.
This is why India should never run “massive and prolonged surpluses like East Asia has done”.
“Balanced trade would be good for our own people, our civilisation and would be our gift to the world,” said Vembu.
–IANS
na/uk
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
