Ruchir Sharma has rightly punctured desires of a sustained reopening growth in China (Opinion, Might 21). Certainly, outdated China palms see its financial system as a distant (however far bigger) echo of Japan’s at its 1990 peak, and for a similar causes — weakening demographics and an excessive amount of debt fuelling an excessive amount of funding, in Japan’s case company funding, in China’s case infrastructure and residential property.

China can be experiencing the identical US protectionist backlash as Japan did then. This time, although, a sluggish Chinese language financial system may have extra critical world ramifications, and never merely by way of weakening demand for uncooked supplies comparable to iron ore and copper. Germany, which way back hitched its wagon to China’s star, and benefited vastly from exports of vehicles and equipment may now undergo from China’s drive for self-sufficiency. Its automotive exports to China are falling, whereas Chinese language manufacturers are squeezing out German makes domestically and are poised to invade the EU market.

And what are Chinese language home traders doing — shopping for gold at a premium to world costs. Not an indication of confidence in their very own financial system.

Richard Cragg
London KT1, UK