M
ichael Pettis, a professor at Peking University's Guanghua School of Management, has been analyzing China's financial markets for years. He notes that the country's economic growth is heavily reliant on debt and investment, rather than productivity or innovation.

    Pettis argues that this model is unsustainable in the long term, as it creates asset bubbles and misallocates resources. He also points out that China's financial system is opaque, making it difficult to assess its true health.

    The country's economic growth has been driven by a massive expansion of credit, which has led to a surge in debt levels. Pettis believes that this will eventually lead to a sharp correction, as the government struggles to maintain control over the economy.

    Pettis' views are not unique, but his analysis is based on a deep understanding of China's economic history and its current financial situation. His warnings about the risks of China's economic model have been echoed by other experts, who share concerns about the country's long-term sustainability.