Lets go at this from what China had to lose:
http://worldcurrencywatch.com/2010/03/30/the-china-story-no-one-is-telling/
“Who or what really caused the global crisis? Was it Alan Greenspan? Henry Paulson? Greedy bankers? Crooked mortgage brokers? Lack of regulation?
Certainly all of them played some role in the financial meltdown. But there’s a name missing on that list: China.
For years, the symbiotic relationship between China and the U.S. worked just fine.
As an exporter economy, the Chinese bought U.S. Treasuries to keep its currency depressed and exports cheap. Meanwhile, American consumers showed an endless appetite for inexpensive Chinese products.
It looked like a win-win situation. While U.S. depended on China for financing, the Chinese economy depended on American overconsumption. Beautiful scheme!
But this relationship had very ugly unintended consequences. Unfortunately, it took a complete collapse of the global financial market to expose the major flaws of that relationship.”
So China decided to cut their own throats? Now Paulson makes sense to me. It was not an attempt to elect a dildo. It was a run on the bank. Perhaps it did happen on that day one. Go figure. People try to attribute meaning to why things happen and they often get it wrong. China was just acting in their own interest.
China was approached, but they declined, in this report:
Paulson claims Russia tried to foment Fannie-Freddie crisis
http://www.freerepublic.com/focus/f-news/2440456/posts
“The Chinese had declined to go along with the disruptive scheme, but the report was deeply troubling,” [former US Treasury secretary Hank Paulson] said. A senior Russian official told the Financial Times that he could not comment on the allegation.