Perhaps, but no one is going to push their system over the edge. They are not subject to bond markets, George Soros, speculators or protestors.
Depends...when contracts are let to Chinese companies to manufacture stuff, there is usually a considerable down payment with the contract signing..helps the factories pay for labor and raw materials, and also helps to guarantee that the goods are paid for when finished. If there is a sense that China/Chinese factories are in big financial trouble, then companies will be much less willing to advance funds, nor will banks/factors be willing to step in and finance..