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China does not have a modern banking system. And therein lies the problem. They are awash with foreign earnings, and have no way to put them to work. There are huge public works programs in operation, that in scale, probably dwarf even the greatest undertakings of the New Deal days of FDR, back in the 1930's. There are also countless smaller enterprises that are being funded, but the difficulty is that there is no oversight, and many of the smaller loans are non-performing, essentially not being repaid, and there is no legal machinery in place to effectively foreclose on these loans to liquidate them.

China is headed for a huge banking collapse, and because so much of their business is tied to Western currencies, bodes ill for the world economy.

The Great Depression is going to look like practice, not even a full dress rehearsal for what is coming.

They are awash with foreign earnings, and have no way to put them to work.

Well, actually, they do. A huge chunk of it goes to Russia to buy all kinds of arms. Another huge chunk goes to fund state run "enterprieses" that are fronts for China's vast intelligence initiatives. A lot gets lost in the nearly limitless swamps of corruption. They are also buying up staggering amounts of Treasury bonds.

But I do agree that despite all that they have a huge surplus of dollars that they don't quite know what to do with.