It seems surreal to read a negative headline about China. During a decade of double digit growth, ETF issuers scrambled to compile holdings in China's booming economy. Not only was China manufacturing nearly every piece of furniture, toy, gadget and household item for America's insatiable consumer economy, the country was also building its own gigantic infrastructure. China has been the center of the universe and everything revolved around them. The raw materials for every aspect of manufacturing were drawn from everywhere in the world: petroleum, copper, steel, aluminum, chemicals, rubber, etc. Exporters of these raw materials, many of which were emerging markets, enjoyed expanded economies to meet the enormous demands.
The global recession, which hit a pinnacle in 2008, slowed the demand for China's goods and the ripple effect has hit its suppliers. Furthermore, China's own economy saw such rapid expansion that it became necessary for China to impose slowing to prevent runaway inflation.