[Former Proud Canadian]

This equals 40 per cent of gross domestic product and China has already spent the equivalent of 25-30 per cent of GDP in previous bank bail-outs.

As much as 70% of the GDP in bad loans? Yeah, I'd say they are in big trouble. This is the 900 pound gorilla. How is this going to affect the US economy?

[Brilliant]

For one thing, it would force them to devalue their currency.

[The Red Zone]

If China can keep on keeping on with things this bad, wait till they fix it. Goods will be twice as cheap.

[coconutt2000]

This could be bad... Depending on how medieval the current Communist leadership is, this may be the trigger to a new wave of Chinese expansion, which would mean World War III... Although China would be alone on its side, unless Russia throws in with the giant to its south, and if Russia pulls a Stalin - we'd end up bailing them out... again.

Get ready to invest in Defense.

(I place Chinese expansion and civil war as equally possible. Both would be bad in terms of casualties, but the latter is infinitely better for us than the former. Except that a Chinese civil war might result in nuclear proliferation on a scale the Russians haven't been able to achieve, though not for lack of trying.)