China, economic bust?

I've just come across this article on the possibility of a Chinese economic bust similar to what happened to Japan in the early nineties.

moneycentral.msn.com...

This could really suck for just about everyone on the planet. Lets take the worst case scenario. Lets say Sept. 2006 the Chinese economic bubble bursts trillions of dollars go down the drain. The Chinese desperate for cash call in all their loans and begin selling all the US treasury bonds they've been hording causing the US economy to go into the toilet which in turn causes demand for goods from europe to sink causing europe's economic recovery to stall. Pretty scary.