Is the Chinese economy in decline?

On Sunday I posted an article that talked about the plunge in world stock markets led by the Chinese markets.On Monday the markets again plunged worldwide. Mondays are not very good days for stock markets especially when they close on Friday after turmoil. If markets close down on Friday, the tendency is for them to go down further on Monday mornings. The weekend gives traders time to think through how best to safeguard their investments . The tendency is us lay for everybody to sell. Selling in a panicky market leads to lower prices as traders and investors try to stop loss. markets worldwide lost their value as a result of this condition. On Tuesday, investors had more confidence in the markets and most markets worldwide rallied except the Chinese markets which again closed down about 7 per cent lower. In a few days Chinese markets lost about 15 percent or more of their value and since June this may be almost 40 percent. The causes as explained in my earlier post are several . It's common in stock markets to see ups and downs like any capitalist system is. Now and again you have a longer than normal decline called a depression or a bearish movement. on the other hand you may have a strong bull movement, an upward movement of prices that may lead to overheating of an economy and possibly inflation. This is where governments especially the central bank must come in to support the markets through interest rates or other methods. The Chinese economy as earlier indicated has been under direct control of government and China has a large number of parastatals. The plunge in markets is a reflection of slow down of the Chinese economy and a challenge to the government control of markets. But it seems the worst is over for world markets except the US and China. The US DOW closed down almost four percent on Tuesday.! This is despite the health of the American economy that has been churning out jobs in recent months. It's possible that the US markets are also undergoing a correction before they settle down to reflect on actually conditions in the market. It may also also be a reaction to the strong dollar that has seen American exports decline. The US markets normally provide leadership in global trends. However the Chinese markets to settle down must accept market forces to determine their value not the government