China's biggest problem is a really wierd one: it is earning too much money from making all our goods for us.
They can't simply bring the pot of (dollar) earnings into their own economy without undermining their own currency, triggering an inflation spiral as bad as, or likely much worse than, 1930s Germany.
The only way they can safely deploy these massive stockpiles of money is to invest it every which way they can, elsewhere in the world. Sure a lot of it goes on infrastructure in developing countries (you need to build roads and railways to get mined ore to port) but the biggest place to soak it up is in lending to the USA and other developed countries.
I sometimes find it hard to judge whether China is functionally communist or capitalist. Maybe their workforces still run as collectives, maybe they don't? They apparently have a middle class segment of society - better educated in the big cities than in the rural provinces and so forth.
Perhaps the one crucial difference is that they kept the cost of living under control for longer than we did, which kept wages under control and, by avoiding the whole business of maintaining pay differentials and the "I'm worth more than you are" attitude (of one job type over another) which infected the unions in our part of the world and led to the annual round of pay-hikes to maintain those pay margins and the chronic inflation that caused (rises were always in percentages not absolute amounts, causing growth in the problem), they made their wage rates internationally competitive.
It is slowly dawning on the Americans that cheap goods at WalMart is all very good but that means tens of thousands who would have been employed at factories on home soil, generating income tax revenue in the process, have been put out of that work. Whereas they would have been, in theory, freed up to work in the manufacture of more high-value goods or more technically skilled, higher paying work, the reality is that most of them end up on the dole, drawing down more than they ever generated in income tax. Their reduced spending power means that every other manufacturer and service supplier loses business, have to cut staff and it's a long downward spiral for everyone thereafter.