For all the talk in this forum about how high and mighty China is...

The sobering reality:

The really worrying financial crisis is happening in China, not Greece

China looks like it is heading for its version of the 1929 stock market crash

While all Western eyes remain firmly focused on Greece, a potentially much more significant financial crisis is developing on the other side of world. In some quarters, it’s already being called China’s 1929 – the year of the most infamous stock market crash in history and the start of the economic catastrophe of the Great Depression.

In any normal summer, a 30pc fall in the Chinese stock market – a loss of value roughly equivalent to the UK’s entire economic output last year – after an ascent which had seen share prices more than double within the space of a year would have been front page news across the globe.

The dramatic series of government interventions to stem the panic – hitherto unsuccessful, it should be added – would similarly have been up there at the top of the news agenda. Yet the pantomime of the Greek debt talks, together with the tragi-comedy of will they, won’t they leave the euro, has relegated the story to little more than a footnote - even though 940 companies, more than a third, have now suspended trading on China’s two main indices.

http://www.telegraph.co.uk/finance/china-business/11725236/The-really-worrying-financial-crisis-is-happening-in-China-not-Greece.html

I think they are facing some crisis indeed. However, I think they have the means to recover.

well with every thing now a days made in china
and usa so many out of work and not buying

i could see where they might be in a hurt

They made the same mistakes in housing we did except their government fronted the money for the overdevelopment and the bad loans to the buyers. The world market is contracting and China relys heavily on its huge trade imbalances to fund its government.

Housing collapse plus market contraction equals back to reality for the communist utopia.

All that is really left to finish them off is a steep rise in oil prices. They have huge reserves stockpiled, but that won't last forever with a billion plus people..

I hope that China doesn't revert back to hard line repressive Communist Regime.
All we need is another North Korea on steroids.

Holy sh@t! I didn't think of that.... A whole new/ old terror.
Time to panic people.

China has invested heavily in Africa in recent years. They invested heavily in infrastucture projects, including power provisions, electrical grid work, rail road projects as well as providing low interest loans to countries with low credit ratings.
They've invested in airports, highways. The planned intercontinental railway is one of the boldest in recent times, linking the continant with a unify and vital trade strategy long needed in Africa.

In return for Chinas aide, China recieves favorable rights to develop oil and mining projects for its hungry industrial needs.

China has quickly replaced the International monetary fund and other institutions by extending credit lines. The IMF has tried to respond by offering debt reduction and in some cases total debt forgiveness in an attempt to stem Chinas influence.

This has proven difficult due to the IMF past practices of irregular policies that have been deemed extortion like policies for access to resources.

China indeed are facing some times ahead, however, they also seem to have forseen it before hand, which explains their heavy investments in resource rich Africa.

Chinese Government Fights To Stabilize Stockmarket - 12 videos CNN

http://www.cnn.com/videos/business/2015/07/08/exp-qmb-patrick-subclip.cnn?sr=biob-armfeed/

Shows that markets can't be created and controlled from a centralized bureaucratic government such as they have now. Free markets are better.

Meh...
China isn't that far removed from third world status anyway.

I work in China.

There are abandoned skyscraper housing projects and abandoned shopping malls all over the place.. everywhere.

The Chinese government built on speculation and in some instances built entire huge towns with the thought pattern that business would follow. Which it did not. These areas are ghost towns.

And yes, they have invested in their infrastructure and made very good progress in a lot of those areas. But they also have a large amount of " highways to nowhere", also build on speculation.

The business climate is changing. Even Chinese factories are outsourcing to other Asian countries. Chinese workers now demand ( and get) more pay. Raw material costs have skyrocketed. Freight costs are extremely high. The landed cost of many items now made in China is at or slightly below the cost to make it in the U.S.

It does not make much business sense to continue to manufacture in China for many industries. And there is already a wave of companies pulling some ( or all) of their manufacturing out of this country.

In my opinion their "bubble" will burst and I also think they will recover, but I am unsure as to what that "new China" will look like