Chinese economy will experience a chilly winter in 12 months. The extent and swriftness will exceed people's expectation.
A crash scenario is not likely but a full blown recession is probable.
I do see a immobolization of economic situation in China after 2008.
On the US side, the recession is in hte making which will manifest itself in mid 2007.
Bond seems attractive, so do selected commodities (not inlcuding oil).
Housing will have a hair cut temprarily in both countries. But Chinese housing market will triple in the next 5 yrs. (in nominal terms)