They could take a hit to their short term returns, and unwise players who over extended on their own could go under, but in general....

The majority of this cash is backed by China's riduculous cash reserves. This isn't paper shuffling, these are actual physical assets the nation of china, which is a largely self sustainable mega economy has an interest in procuring.

HUGE amounts of aerable land all around the world are owned by chinese conglomerates. Extremely desirable land and buildings in all of the worlds major cities.

If push comes to shove, yes individual investors could get the boot. In fact thats the whole point. But anything worthwhile they are going to hold onto the long term.

Its unbelievably short sighted on western nation's part, but thats just the difference in philosophies. Unless they are taken by force, china will float desirable assets for 30 years if they have to. Which by then, barring a commet hitting the earth, they will be worth at least double.

"Let her sleep, for when she wakes, she will shake the world"

-Napoleon Bonaparte c.1830 on "The Dragon"