The circle has always worked in the past 50 years since the two countries to diversify the economic downturn. However, looking at the country's trade balance, start, problems arise in China. An important issue is the growing real estate bubble in China .. America, our own housing bubble, which was exacerbated by mortgage-backed securities continued to experience the consequences of the credit default swap followed. China, which in recent years, both commercial and residential real estate construction and prices has been phenomenal growth in developing their own bubble. Since securitization is in its infancy in the Chinese market, a significantly lower number of established values ​​is spent, but the Chinese banks as a result of the housing boom is a large number of construction loans and mortgages. But the realization of the potential consequences of the bubble, the problem should be looked at from all sides.

In a global context, China escaped relatively unscathed from the recession. To develop the housing market (some say too fast, which will be the main focus of this article) is, gross domestic product in 2009 increased by 8.7%, and the national unemployment rate stands at 9.3% (please Note that all of this information, the Chinese government), courtesy of which remains in control. The country has been through 9 November 2008, when the government's economic stimulus package 586.000.000.000 $ question decided to support. At the time to meet with skepticism, proved to be very efficient, and analysts of U.S. economic stimulus package than the praise of his success. However, the two are far from comparable. The end of 2008 China's gross domestic product of $ 3.3 billion (around this in perspective, U.S. GDP was $ 13.8 trillion at the time put in). Working through the math, we see that China's excitement only 5.7% of GDP the U.S. spends a whopping 17.8%.

Foreign direct investment (money invested in China by foreign institutions) declined by 2.6% last year. The numbers in the past 4 years, met in 2009 on a wall. Few people, either with less money in speculation China's economy through financial or investment adviser. About 30% of national industrial production, urban employment, 55% to 11% and trading companies with foreign participation account. Takes place after the excitement of China, it is unclear whether foreign investors to get into a situation, or at least stabilize the economy. It is only a small fraction of possible outcomes.

In their latest designs Chanos noted as China, "China's banking system, is loaded with bad debt." Since 2001, China performed a significant number of bad loans has been as a result of struggling with their debts.was reduced and in particular asset management companies. In any case, the Chinese banking system, where the government essentially all domestic commercial banks, the heavy debt (as is the case, if the stimulus package was announced) controls the composition of demand. The Chinese government has said that the 'debt' and the banks followed. This in turn increases inflation, and a growing number of loans to low income potential. In response to these concerns, on 20 January, the Chinese government is urged to check the national credit banks. Not only raise interest rates, but go at once. This is just the first step towards the recognition of China is a big problem on your hands is.