China’s and India’s structural problems will outlast the coronavirus crisis

India and China face significant structural problems predating the coronavirus crisis. There are two main causes behind China’s structural problems: the difficulty exiting its mercantilist model; and declining corporate profitability and solvency. India’s structural problems also have two main causes: a shortfall of infrastructure and education; and a shortfall of savings, leading to an external deficit and to a renewed balance-of-payments crisis. The two largest countries in the world (in terms of population) are therefore in difficulty, not only because of the current health crisis, but also for profound structural reasons .