The FT snagged an interview (via Yvees Smith) with Chinese professor and PBOC monetary committee member Li Daokui on the much talked about subject of the Chinese property situation.

"The housing market problem in China is actually much, much more fundamental, much bigger than the housing market problem in the US and UK before your financial crisis," he said in an interview. "It is more than [just] a bubble problem."

What does that mean? Basically that high prices cause their own societal problems.

Mr Li said the high cost of housing could hamper future growth by slowing urbanisation. Rising prices were also a potential political flashpoint, especially among younger people who felt locked out of the property market.

"When prices go up, many people, especially young people, become very anxious," he said. "It is a social problem."

Meanwhile, Chinese premier Wen Jaibao is urging the world to maintain a "sense of crisis" in regards to the economy and that the global economy is too fragile to start withdrawing stimulus.

In other words: Dear countries that import our products, don't start slowing down.

Click the image below for a video with Li Daokui: