China has rapidly become one of the leading economic players in the world. Land and development have become an important commodity, a commodity that is crucial to continued business growth. China is now in the position that there is more real estate than is actually needed meaning that prices should fall. When this happens large parts of the economy will become worthless leading to a economic collapse unprecedented in China's recent history.
China's economy is booming--largely in part to the sheer number of residents. The younger generation is moving beyond the expense of living in the mega-cities to suburbs and lower tiered towns, thus providing more expendable income as their housing costs decrease. The expanding real estate market outside the major cities will continue to boost the economy.
China's economy is based on production and will definitely remain strong in the coming years. Regardless of their current real estate market, the demand for cheap products remains high, and other countries will continue to purchase such products from China, allowing their economy to continue to prosper and thrive as it has been.
No matter how bad the Chinese economy starts getting, it does not matter. The United States owes China more money than it can legally generate in 25 years. I'm sure if China was in a tough spot they might just reclaim some assets we gave the as collateral. You know, American states.