Some economists (including some very clever economists) still see a soft landing for China though I'm reluctant to buy into that theory. It's possible things will go well, but as an interested observer of China's long and amazing history, I don't see it.
China's best export markets are not buying the way they used to buy and that business is gone for a while. Infrastructure development could have helped in many ways but building ghost towns at home and abroad is wasteful and indicates ongoing problems with corruption. (Not that the US doesn't have serious corruption problems.)
This year and into 2013 is going to be very challenging for China's leadership.
China's economic growth has slowed to a new three-year low, dampening hopes it can make up for US and European weakness, but analysts have said a rebound might be in sight.Don't forget that Australia linked its economy to China a while back and has enjoyed an impressive export economy feeding raw materials to China. The Australian economy is now softening and exports are dropping.
The world's second-largest economy grew by 7.6% in the three months ending in June compared with a year earlier, down from the previous quarter's 8.1%. It is the lowest since the first quarter of 2009 during the depths of the global financial crisis.
China's slowdown could have global repercussions, especially at a time when the United States and Europe are struggling. Lower Chinese demand could affect Asian economies that supply industrial components to its manufacturing industry and exporters of oil, iron ore and other commodities such as Australia, Brazil and African nations.
If China doesn't have an export market, it doesn't need the same supply of raw materials. Shipping is also another sign of trouble and those numbers also show a sharp decline as does a dramatically reduced need for electricity.
There's still time though for the whining bankers to relocate to Asia so they can fully enjoy the freedom of playing in that market. Don't wait guys and don't bother to send a post card or come back when you need another round of handouts.