How these cascading Chinese crises will affect markets elsewhere is still unclear, with one exception: Capital with fewer opportunities in China clearly needs a refuge, and some of that money has found one in neighboring India. But although this shift in global capital flows certainly isn’t good news for China, it may not be good news for India either. The problem: India is not yet ready to absorb vast new flows of hot capital. The result would likely be a tech bubble whose bursting would hurt a society hobbled by the ravages of the pandemic and persistent government mismanagement.

You would think Chinese President Xi Jinping is dead set on kneecapping his country’s much-vaunted tech industry, which makes up nearly 40 percent of China’s GDP. His government’s crackdown on some of China’s biggest internet companies has already wiped out $1.5 trillion in stock market value. This comes at a troubling time for the Chinese economy. Even as it is letting the air out of tech, Beijing must scramble to control the popping bubble in the country’s infamously inflated real estate sector . These problems are now compounded by an energy crisis that has led to power blackouts and could soon impact manufacturing.

You would think Chinese President Xi Jinping is dead set on kneecapping his country’s much-vaunted tech industry, which makes up nearly 40 percent of China’s GDP. His government’s crackdown on some of China’s biggest internet companies has already wiped out $1.5 trillion in stock market value. This comes at a troubling time for the Chinese economy. Even as it is letting the air out of tech, Beijing must scramble to control the popping bubble in the country’s infamously inflated real estate sector.