I'll let this article speak for itself.....

Chinese Manufacturing is Crashing. Economic slowdown: China confronts mounting piles of unsold goods. The recent headlines about the state of manufacturing in China aren’t generating a lot of sympathy in the U.S., where many manufacturers have adopted an adapt-or-perish approach to survival.
Experts say what’s really hurting the manufacturers in China — besides the mountains of unsold goods, the car dealerships overwhelmed with vehicles and overflowing factory warehouses — is the economic shell game the government insists on playing to conceal the depth of the problems from the Chinese people.
In the U.S., shuttered factories and surplus inventory are matters of public record.
But the Chinese government engages in creative accounting, adjusting or even eliminating certain economic data.
The Public Security Bureau no longer releases car registration data — coincidentally, dealers can’t find enough spots to park all the cars in their inventories.
When the steel sector took a dive, the government repeatedly rewrote the books.
It’s all supposed to maintain rose-colored glasses for investors and business managers.
Critical statistics trickling out of China show August will be the 10th straight month of decline for manufacturing. Even the economists there didn’t expect it to be this bad.
One scene that’s playing out: Manufactured goods are piling up at record levels. Suppliers are forced to maintain production, because the local government is ordering manufacturers to keep cranking out the goods — no matter what.
Over the past 10 years, the Chinese auto industry has become the world’s largest. Now it could be facing the same adversity Detroit weathered in the 1980s.
China watchers say there are three key reasons for this:
  • The government fears what could happen if the employees at these factories suddenly had a lot of time on their hands.
  • Local government officials are evaluated on the growth in their districts, and
  • Manufactured goods — even if they’re unsold — are still counted as a plus when calculating the country’s gross domestic product.
Surely they’ll excuse U.S. industry if there are no tears shed on this side of the world.

source: http://www.manufacturingweekly.com/chinese-manufacturing-is-wallowing-in-red-ink/?pulb=1