China’s problems are entirely its own making.
They had massive inflation over the last 20-30 years, so people didn’t trust their own currency, as a result China started massive infrastructure projects, buying up massive debt from the US and EU and basically started issuing US/EU IOU’s as payment.
The market responded abroad by moving industry there, because, free infrastructure, people in China noticed and started buying real property instead of saving money because a house is always worth the new valuta if money in the bank is not worth anything.
But there are too many Chinese so the government, being in control of the economy, had to build more than the government could afford to build in places they had already built infrastructure for the too many companies they had attracted with too much free infrastructure, so many cities basically got into an infinite loop of companies building more stuff requiring more complex infrastructure in unsustainable locations.
This is only compounded by the facts of history like the one child policy that there aren’t sufficient people being born to continue the economy. There is also the facts they had to divert massive water and energy sources from interior in China to the coast cities (they built everything on the coast, because access to international shipping). This redirection is hugely damaging and the majority of Chinese cities are now facing water and energy shortages.
So now we are at a point in time where it is unlikely all those US and EU debt IOUs will be worth anything. But everyone in the infrastructure/real estate market has been paid with those IOUs.
The other thing people started investing in, especially in China was Bitcoin, because if government fiat money isn’t worth anything, a real money (like gold and Bitcoin) is. Hence the government crackdown over there, because they see more money being circulated in real money than their fiat money. It’s the same reason the US has made gold illegal from being used as a payment, because if nobody trusts the government money, they will be broke.