Zoho CEO Sridhar Vembu lauds Chinese entrepreneurs’ ‘survival tactics’ amid economic challenges: ‘Whenever I am…’ | Company Business News

Zoho CEO Sridhar Vembu, in a post on X on Saturday, appreciated Chinese companies that have survived corruption and protectionism measures in the economy. Such companies, he said, have inspired him whenever he was “tempted to complain.”

In the post, Vembu praised Chinese entrepreneurs.

“My point in posting comparisons with China is to show that Chinese companies have overcome so many challenges, from corruption to red tape. That is a source of inspiration for me; whenever I am tempted to complain, I think about Chinese entrepreneurs,” he wrote.

According to Vembu, Chinese entrepreneurs use exports as a “survival tactic”.

“Chinese entrepreneurs focus on exports so much, perhaps because it is simply far easier to export than to sell within China! In other words exports may be a workaround, a survival tactic for Chinese entrepreneurs, not a sign of strength,” he added.

Vembu shared a quote from an article that mentions the measures of protectionism and trade barriers in China.

“China’s local protectionism has become increasingly sophisticated, with municipal and provincial governments setting up barriers to protect regional interests and ensure growth within their own jurisdictions. This approach hinders outside companies in competing with local firms,” he cites.

Earlier, in a post on X, Vembu urged India to see China’s technological and industrial growth. He emphasised how Indian companies should focus on creating businesses with $100 billion in revenue rather than going for inflated valuations.

“India needs a lot of them if we have to lift our people up. China has such world champions in plenty now, and they grew up in the last 20 years. I will tell you what won’t get us there. What won’t get us there is endless focus on valuation,” Vembu said.

Comparison with Japan

In a separate post on X, Vembu compares Japan and China, where the prospect of rapid growth has impacted the demographic profile of the country.

“Japan reached its peak technological prowess around 1990. “Japan as the number 1 economy, Japan overtaking the US” were all serious topics then. What happened? Serious demographic decline,” the Zoho CEO wrote.

The population in Japan is declining and ageing. The population is expected to decrease to 104.9 million by 2050 and 87 million by 2060, according to Earth.Org. China used to be the most populated country in the world before India surpassed it in 2023.

According to him, China, being a technology leader, faces a demographic bust.

“China also faces a demographic bust at least as bad as Japan. Chinese elite know about this, but demographics is a byproduct of so many choices made in the past, in an attempt at rapid catch up – massive urbanization, extreme lack of work life balance, long commutes, loss of traditional culture, loss of religious faith, rise of nuclear family – so demographic decline, once it sets in motion, is hard to reverse. I don’t know any country that has reversed it,” Vembu wrote.

“This is another reason I prefer a rural life and I actively embrace our traditional culture. I want to pursue economic development that is pro-babies. In the long term, nothing else really matters!” he wrote.