The success of Chinese companies in global markets may be driven more by domestic obstacles than strategic advantage, according to Zoho CEO Sridhar Vembu, who points to surprising internal trade barriers within China’s economy.
“Chinese companies have overcome so many challenges, from corruption to red tape,” Vembu wrote on X (formerly Twitter), citing protectionist barriers between Chinese regions as evidence that exports may serve as a “survival tactic” rather than a sign of strength for Chinese businesses. “That is a source of inspiration for me; whenever I am tempted to complain, I think about Chinese entrepreneurs,” he further added.
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This perspective adds nuance to Vembu’s previous calls for India to emulate China’s technological and industrial rise. In an earlier post, he emphasized the need for Indian companies to focus on building sustainable $100 billion revenue businesses rather than chasing valuations, pointing to China’s success in nurturing major tech companies over the past two decades.
Zoho CEO has consistently advocated for India to learn from China’s development model while maintaining a pragmatic view of the challenges involved. In June 2024, he noted China’s remarkable progress in research output and industrial capabilities, arguing that India shouldn’t wait for perfect conditions to pursue technological advancement.
“China didn’t end pervasive corruption or become a democracy before she rose as a technological power,” Vembu had observed, in a post earlier, encouraging Indian entrepreneurs to maintain optimism despite structural challenges.
Vembu’s latest observations suggest that Chinese entrepreneurs’ success in finding workarounds to domestic barriers could serve as a model for Indian businesses facing their own market challenges, reinforcing his message about building resilient companies focused on long-term growth.
