China is in crisis. The economy is no longer working. Forget the 7% GDP growth the government mandarins are posting. In all likelihood the economy is contracting. How can it not be with automobile sales, exports and construction in decline? Remember that China is the only country that has never revised its GDP statistics. They make it up as they go along. The recent devaluation of the Yuan confirmed that the economy isn't what it used to be.
With the Communist Party no longer able to deliver economic growth, its widely publicized effort to prop up the stock market failed and with that billions of dollars have evaporated.
Further the deadly industrial accident in Tianjin proved to the populace that the government failed to protect the rising middle-class who lived nearby in high-rise apartments.
It is one leadership failure after another and it is calling into question whether or not the ruling Communist Party still has its mandate from heaven. Simply put, it is losing control. Time will tell, but meantime the global economy will be in for a rough ride.