Meh. That happened in the eighties with the Japanese shopping spree in the western world, culminating with the purchase of the Rockfeller center. Life repeats itself like a sinewave.
Japan increased their standard of living and moved to a more balanced trade¤t account. Whether China does the same, or uses it's surplus simply to buy up foreign assets remains to be seen.
It can be dangerous to allow your economy to fall into foreign hands, just look at New Zealand. Every year a trade surplus, every year deeper in debt, with land prices going ballistic as a result. Instead of fixing it, their government just keeps putting signatures on trade agreements which bind their hands. (The types of measures necessary would inevitably advantage domestic buyers, which is an ISDS lawsuit waiting to happen).
I don't see the world's consumer of last resort being maneuvered into that position, but if China does not balance out it's trade and continues it's buying spree of rent generating assets (instead of buying into bubbles) they are going to destabilize the global economy even more (which has been in lala land since Bretton Woods ended). Eventually the current account will snowball and something will have to be done, trade agreements, WTO and ISDS be damned.
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