The other problem that won't go away is that China needs buyers in the West and that market is not returning any time soon. China has the problem of 70% of its wealth concentrated in the hands of 1% so they do not have enough middle class buyers to fill in the gaps.
Each month another new sign shows problems and now it's more bad factory activity.
A key private sector indicator on Thursday - which showed Chinese factory activity slumped to a nine-month low in August against expectations of a modest seasonal pickup - throws up the question when the world’s second largest economy will finally hit a bottom.
The second quarter, during which growth slowed to 7.6 percent, was regarded by many economists as the bottom for Chinese economic growth. However, experts say this view may have been overly optimistic.
“(While) we still believe the Chinese economy will pick up steam in the fourth quarter, this idea that the bottom has already passed in May-June is optimistic,” Frederic Neumann, Co-Head of Asian Economics Research at HSBC told CNBC after the release of the data.