Until Chinese families and companies can invest their savings abroad, the only three places they can go is into education, real estate and the stock market. Chi

Until Chinese families and companies can invest their savings abroad, the only three places they can go is into education, real estate and the stock market. China has bubbles in all three of those sectors. Those last two are the most closely related to the massive property bubble in China and are also the reason the stock market is so volatile: companies own land and they own each other and that dynamic leads to a virtuous cycle of increasing market capitalization in good times, and collapsing valuations when valuations fall. Small price changes can have a disproportionate effect on market capitalization. My business teaches Chinese online (http://popupchinese.com http://popupchinese.com) from Beijing, so we're face to face with the economic reality here. And while everyone knows there's a bubble in real estate (it's on television every night), when you adjust Chinese GDP to account for purchasing power parity and adjust to the wage scale, the Chinese economy looks much, much bigger and more important than it seems if you're looking from an American perspective. Anyone who hasn't had the chance to visit yet definitely should! And start learning Chinese too. Incidentally, a number of studies on Chinese energy use have cast doubts on its rate of growth for years. Still doesn't mean that the Chinese economic miracle isn't the story of the century.