I agree that all economies including China will be affected by a global meltdown.
During that meltdown which country will be least affected? The country with the least debt per head of capita. I am not saying China will not be affected. Of course they will. However, where along the bankruptcy line from highest to lowest does China fit in? I would expect at the lower end of the spectrum given its level of debt and EU countries and US at the highest end of the spectrum.
Not to say it can't change especially given its central bank lending practices and the property bubble looming over there. Even with a high level of debt i would suggest Australia sits at the lower end simply because it can afford to make its repayments. I would also put that down to the high level of investment into Australia's mining industry by China. My point being that debt carries an element of risk and it magnifies during times like this.
How bad future times are going to be, i have no idea except to know that we are heading in uncharted waters that could have dire consequences. Not a time to be borrowing nore a good time for a country to be introducing outlandish policies such as the Carbon Tax.
