China’s economy was meant to drive a third of global economic growth this year, so its dramatic slowdown in recent months is sounding alarm bells across the world.

Policymakers are bracing for a hit to their economies as China’s imports of everything from construction materials to electronics slide. Construction equipment-maker, Caterpillar, says Chinese demand for machines used on building sites is worse than previously thought. U.S. President Joe Biden called the economic problems a "ticking time bomb.”

Global investors have already pulled more than $10 billion (¥1.4 trillion) from China’s stock markets, with most of the selling in blue chips. Goldman Sachs Group and Morgan Stanley have cut their targets for Chinese equities, with the former also warning of spillover risks to the rest of the region.