There should be no surprises on what is happening in China. It is simply a good old fashioned debt bubble that is a simple Icarus style situation. They flew too close to the sun. They grew too fast gorging on debt. Now they are paying the price.
It’s all about debt growth vs economic growth. When debt growth is multiples of economic growth, there is a 100% certainty of difficult times ahead. Simple maths could work out that their growth was going to hit a wall around now within a year or so accuracy.
Those that ignore debt will eternally miss the mark.
By by the way, Australia has the highest household debt to GDP in the world. Our debt wall is not far away. It may be brought closer with the China Crisis.