China continues to increase oil consumption, while we use less oil. Oil has been running over $108 per barrel.
China's economy is slowing. They depend mainly on trade with Western Europe and the United States for survival. They're entering deflation along with the rest of us.
China will need to seek new trade with India and Brazil as part of the BRIC coalition. However, their products are too expensive for these countries, so China will need to devalue their currency to make this happen. Cheap Chinese junk will become even cheaper Chinese junk for us.