In parallel worlds of economic absurdity, US cannot deflate into a stock market melt-down; China cannot allow a housing market melt-down. So, paradoxically, there is no such thing as bad debts in China; there is no such thing as bad deficits in US. My point is that (1) we can forget about seeing a real bad debt crisis in China; and (2) we can forget about a real stock market crash in US.
In real economic worlds of people on the ground, China is not going to have a nominal recession any time soon, while US is actually going through a stealth recession for sometime now. US can muddle through the next general election cycle, while China can muddle through the next CCP congress cycle.
On relative terms, both China and US are in much better macro economic shape than any other meaningful country in the rest of the world. If everything else fails, China still is by far the largest and most productive industrial economy in the world.
