Fundamentally Steve what you say COULD happen
Particularly if China was a completely Westernised open market where to a certain degree cogs in the system are left to fail (Not always and not all "Cogs" as some are more important than others.)
However could you imagine the petrified look on the communist elites faces if they did in fact let parts of the economy "Crash" to allow a clean state fresh start and all that....AND
THEN...
The hundreds of millions of angry Chinese peasants rising up against their rule
China has more than enough US Treasuries to sell to offset the debts of the local chinese government authorities and state owned entities
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Fundamentally Steve what you say COULD happenParticularly if...
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