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China "If you build it, they will come" mentality in regards to their real estate bubble is very similar to the "Great Leap Forward" strategy used in the past.

A crash in the Chinese real estate market has the potential to wipe out massive amounts of the country private wealth.

The bigger they are, GE Compatible ultrasound transducer probethe harder they fall. China is guilty of gross capital misallocation on the grandest scale in the history of the world. Never before in all of man's history have so many trillions (tens of trillions?) been blatantly wasted, in ways that will reverberate across the global economy for years to come.

Those whom the gods would destroy, they first rise up. This Brobdingnagian waste was made possible by the epic scale of the China miracle itself, and the fruits born of a sort of quasi capitalism that, over decades of savings and legitimate growth, allowed for the marshaling of vast resources, combined with the worst excesses of command and control arrogance in the latter years.

Like the now defunct Enron, the China growth story was a one time good thing ultimately gone bad  very, very bad. China's economy is, in short, potentially the biggest disaster in waiting the world has ever seen.

It has been a long time coming. The consequences will continue to unfold in slow motion. But that is often the case with such things. And repercussions from "The Great Fall of China" are increasingly being felt:

Some of the world's largest companies have sounded the alarm about the slowdown in the Chinese economy, warning that weaker growth would hit profits in the second half of the year.

Car companies such as PSA Peugeot Citron, Audi and Ford have slashed growth forecasts while industrial goods groups such as Caterpillar and Siemens have all spoken out on the negative impact of China.

The warnings are a sign that China's weaker growth and its stock market rout this month are creating a headache for global corporates that have long relied heavily on the world's second largest economy to drive revenues.

FT, Corporate giants sound profits alarm over China slowdown

Many Western companies are rethinking their entire China strategy. Profit growth in China was already rocky and hard to come by, the competition often unfairly tilted toward local advantage (if not flat out corrupt). If that was a description of the China business landscape in the "good" times then what happens when the wheels come off the wagon?

The Chinese slowdown is forcing many Western companies to take a hard look at their businesses there, leading many to reduce investments, costs and product lines and to tackle increasing bad debts.

Double digit growth rates during the first decade of the millennium lured scores of Western companies to invest heavily in China. But in recent years growth has slowed sharply, hitting demand and raising doubts about the financial health of Chinese companies.

A recent equities market rout has dashed hopes China will, in the coming years, return to the robust growth it saw in the past.

Reuters, Western companies look hard at China as growth slows

Meanwhile, as China's equity market repeatedly freezes and crashes  like some horrible install of Microsoft Windows gone wrong   Beijing is doing its best to flush its reputation for competence down the toilet (after setting it on fire).

After China's stocks crashed in June, the government put more than $400 billion at the disposal of a little known state agency, the China Securities Finance Corp., headed by an academic and bureaucrat named Nie Qingping. It was told to save the market.

The agency's unique mandate is to intervene in the market to buy stocks, with money borrowed from the central bank and other sources, in order to help prop up share prices. With the recent volatility evidenced by another crash on July 27, its success so far isn't readily apparent

Bloomberg, Meet China's Stock Savior: He Never Saw the Crash Coming

In the midst of a public relations crisis, born of ham fisted efforts gone horribly awry, the last thing you want to do is pour kerosene on the fire by making yourself look like a clueless panicky idiot.

And so, of course, Beijing continues to blame and chase "short sellers"  while shutting down outside investor access   in classic the panicky idiot style:

China is pressing foreign and Chinese owned brokerages in Hong Kong and Singapore to hand over stock trading records, sources said, extending its pursuit of "malicious" short sellers of Chinese stocks to overseas jurisdictions

Reuters, China watchdog extends pursuit of short sellers to HK, Singapore

Clear message to all foreign investors in China's equity markets: Beijing will blame you for its problems, and possibly screw you over without a moment's hesitation, if you choose to remain invested.

China's securities regulator said Friday it has launched a probe into automated trading and has restricted 24 stock accounts suspected of influencing stock prices. The government didn't name any of the parties behind the restricted stock accounts. Citadel said Sunday that one of the accounts at a unit that helps clients buy and sell securities was among them.