Let me walk you through a few charts to give you a sense of how severe is the Chinese economic crisis.
In Q2, real GDP grew 0.9%, well below the annualised target rate of 5%. It will still hit the annual target owing to generous base effects and earlier better quarters.
But this is not the real problem. For that, we need to look at the nominal economy. When we adjust for the GDP deflator of -1.5%, the nominal Chinese economy shrank 0.6% in Q2:
Advertisement