China’s "black Monday," the Shanghai Composite’s largest fall since 2007, is being felt around the world today -- from a tumble in the Dow Jones, to a drop in oil prices, to an alarming crash of the South African rand -- as investors weigh fears that the Chinese economic downturn may be worse than originally feared.
All of this highlights the paradox of international competition in an era of economic interdependence: Americans may be alarmed by Beijing’s economic and political rise and know-nothing, populist presidential candidates can count on easy applause for pledges to "beat China," but when China actually does take a tumble, Americans feel it in their pocketbooks and portfolios. China’s economy has proved its critics wrong before, but if the country is in for a prolonged downturn, Americans -- and everyone else, for that matter -- have good reason to worry.
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