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A worker installs rubber onto the windows of the doors along a production line at a truck factory of Anhui Jianghuai Automobile Co. Ltd (JAC Motors) in Hefei, Anhui province May 5, 2014. Activity in China's manufacturing sector contracted for a fourth consecutive month in April, a private survey showed on Monday, adding to questions about whether the world's second-largest economy is still losing momentum.
A worker installs rubber onto the windows of the doors along a production line at a truck factory of Anhui Jianghuai Automobile Co. Ltd (JAC Motors) in Hefei, Anhui province May 5, 2014. Activity in China's manufacturing sector contracted for a fourth consecutive month in April, a private survey showed on Monday, adding to questions about whether the world's second-largest economy is still losing momentum.
(JIANAN YU/REUTERS)

If China has a financial crisis, almost nothing will be spared

Worried about China? There are plenty of ways to bet against a financial calamity there, but they add up to an unsettling fact: A bearish view on China is a bearish view on just about everything shy of U.S. Treasury bonds.

The economist Gary Shilling, who has been quite pessimistic about the global economic recovery, outlines in a Bloomberg News column several approaches for investors who want to score gains from a downturn in China. The country, he argues, needs to confront a growing list of problems, from a slowing economy to rising militarism to corruption to a messy banking sector – all of which could trigger a major financial crisis.