'US is decaying, but...': Finfluencer on why China builds, while US booms & what matters for investors

After a strong stock market rally, several US firms now boast valuations exceeding $1 trillion. Akshat Shrivastava, finfluencer and founder of Wisdom Hatch, noted that despite growing concerns about the US economy and the dollar, the US remains unmatched in its ability to drive growth through debt and financial leverage—a model that supports massive asset inflation and fuels stock market highs. 

In a social media post on X, Shrivastava noted that, in contrast, China’s growth is rooted in high domestic savings (around 44%) and real economic expansion, rather than financial leverage. This means China doesn’t enable widespread financialization of its economy the way the U.S. does—foreign investors can't easily gain ownership of Chinese assets like they can in the US, where firms like BlackRock dominate via "stock-ification" of almost every asset class.

Critics argue that America’s growth is increasingly dependent on debt. However, that very leverage fuels asset inflation, creating an environment where stocks can flourish. Financial giants like BlackRock and Vanguard have enabled what experts call the “stock-ification” of the economy—where nearly every asset class, from infrastructure to tech, becomes investible through equity instruments.

While China is often seen as the next big economic power, its growth model is markedly different. With a savings rate of around 44%, China relies on domestic capital and real economic activity rather than debt-driven expansion. But for foreign investors, the closed nature of Chinese markets and regulatory uncertainty often limit access.

"After the recent rally in the stock markets, all these firms are now above 1Tr$ in market cap.  People are spreading a lot of panic about the US Markets. And, the US$  Yes, US is "decaying". But, it will take decades for anyone to outcompete the US when it comes to generating debt driven growth.  China is the legitimate contender. But, it follows a very different model than the US for growth. In China the savings rate is very high (close to 44%). It is not a debt driven growth model," Shrivastava noted.  

The core point:

US = leveraged growth model (debt-fueled, financialized, investor-accessible)

China = real growth model (savings-led, state-driven, less open to global investor ownership)

Both systems power their markets in different ways. While U.S. stocks thrive on leverage and capital flows, China builds through structural investment and state control. 

Despite valid concerns about America’s fiscal future, the structure of its markets, the dominance of its tech sector, and the central role of the US dollar continue to make it the most attractive destination for global investors.

"Long-story-short: China is real growth story. US is leveraged growth story. Stock markets works on leverage, not necessarily real growth. Both markets serve different purposes," he added.