I dont hope China collapses, and I agree the effect would be world wide. Heres what I can see happening, and I am the first to say no one knows what the future will bring.
Heres what I see and my conclusions, China is on a winning streak, winning streaks never last for ever, neither does an economy, by the vary nature they are cyclic, a basic law of nature, things change. China is a place of riseing expectations, there are lot of people that see a lot of sucessful people and they want a piece of the the pie. A third of the Chinese have internet access, while the Chinese Censorship can keep a lid on things right now, they cant for ever and they would not even have Censorship if they were not frighten of their own people learning the truth about a lot of things such this small part of a list on wikipedia,
Social issues in the People's Republic of China - Wikipedia, the free encyclopedia
"Government and law
Lack of democratic practice and power invested in citizenry
Government's abuse of power (滥用职权
Useless positions in civil service and redundant government agencies
Corruption (nepotism, cronyism, wasting public funds, bribery, buildings, and huge government squaresetc.)
Face projects (面子工程
, including building useless roads,
Tofu-dreg projects (豆腐渣工程
, means jerry-buildings
government-commerce relationships (官商勾结
Lack of the rule of law
Corruption of the legal system (司法制度腐败
Fusion and unclear definition on the powers of the government and judiciary
and there is much more.
Sooner or later something is going to happen. A natural economic down turn, a trade war with the USA alone would cause a down turn and the unemployment of millions, perhaps with the EU.
"Some academics hold that China's fragile social balance, combined with a bubble economy makes China an extremely unstable country, while others argue China's societal trends have created a balance to sustain itself."
Theres no such thing as a sustained self, thats like saying there is Perpetual motion.
There no real Mechanism built in to the Chinese Communist Goverment to deal with conflict with its citizens except repression and sooner or later that does not work.
I expect to see the Chinese erupt into open revolt in the next five years, ten years at the longest.