M
ichael Pettis is a well-known expert on China's financial markets. He has written extensively about the country's economic challenges, including its reliance on debt and its struggles to transition from an investment-driven economy to one driven by consumption.

    Pettis argues that China's financial system is highly leveraged and vulnerable to shocks. The country's banks are heavily exposed to bad loans, and its shadow banking sector is growing rapidly. This has created a situation in which the government is increasingly reliant on monetary policy to stimulate growth, rather than fiscal policy.

    China's economic model is also unsustainable in the long term, according to Pettis. The country's reliance on exports and investment has led to an overproduction of goods and a buildup of inventory. At the same time, China's consumption sector is underdeveloped, which makes it difficult for the economy to transition to a more sustainable growth path.

    Pettis believes that China needs to implement significant reforms to its financial system and economic model in order to achieve sustainable growth. This includes reducing the role of state-owned enterprises, increasing transparency and accountability in the banking sector, and promoting private sector development.