Strange as it may seem, European leaders are having trouble persuading the markets they have solved their immediate debt crisis and safeguarded the euro by handing critically ill Greece a couple of Aspirins. Similarly, a gridlocked Washington can’t seem to assuage concerns about debt ceilings, soaring deficits and imminent rating cuts.

But by far the biggest worry on most investors’ screens these days is a slowdown in inflation-rattled China and the havoc this would wreak on the fragile global recovery.

The Chinese number-crunchers have been doing their level best to show that everything is just fine in the world’s leading growth engine. Beijing reported earlier this month that the economy expanded by a reasonably robust 9.5 per cent in the second quarter. This beat the consensus estimate of 9.4 per cent, which brings to mind the good old days when tech heavyweight Cisco typically topped analysts’ predictions by a single penny. But even if we don’t believe the numbers, China watchers have always insisted it’s the trend that matters.

Still, this hasn’t been enough to lure the risk-takers back to those commodities whose prospects are closely intertwined with the well-being of the world’s biggest buyer of metals and soybeans and the second-largest consumer of oil. Skittish investors still fear a serious slowdown in Chinese manufacturing; and the latest data are sure to underscore their concerns. Preliminary numbers show that a key purchasing managers’ index slid to 48.9 this month from 50.1 in June. Any sounding below 50 signals a decline in output. The government bureaucrat in charge of mechanical, electronic and high-tech industries warned ominously of slowing export growth and possible bankruptcies in the months ahead.

But even if the worst nightmare sketched by the perma-bears becomes reality, there’s no reason for us to fret about Chinese demand for commodities, argues Erik Bethel, a Shanghai-based investment banker specializing in natural resources.

In fact, if the euro zone crashes and burns, the U.S. economy heads into a prolonged tailspin and commodity prices plunge to levels they reached in 2009, “China is going to use it as a huge opportunity to go on a buying spree.”

That’s because the fundamentals haven’t changed, says Mr. Bethel, managing partner of SinoLatin Capital, which advises on mergers, acquisitions and private equity deals involving Latin American and Chinese companies in mining, oil and gas and agriculture. “You can have a Greek implosion plus an Italy implosion plus a California implosion, and that’s going to dramatically affect commodities – but [only] in the short term.”

One reason is that China’s remarkable urbanization drive – and the demand for housing it has triggered – shows no signs of slowing. About 20 million people are still moving annually to the cities, with another 700 million or so remaining in rural areas.

Also, as more Chinese manufacturers clamber up the food chain from low-cost consumer goods to high-end electronics and the like, demand for key commodities like copper and lithium will only expand.

Mr. Bethel throws out some numbers to support his bullish view of how well Chinese demand will weather any global slump. China, for instance, consumes 3.5 kilos of copper per person annually, compared with about 40 kilos in Japan. Assuming the Chinese total climbs 100 per cent to seven kilos – a reasonable assumption – “where the heck is the copper going to come from? There just isn’t enough. And you can make the same argument for soybeans, for iron ore, for petroleum.”

Besides aggressively stockpiling base metals and other staples whenever they spot a bargain, the Chinese are also in the hunt for stuff that doesn’t always reach the radar screens of commodity players. The list includes lithium, a soft, light metal used in ceramics and batteries for laptops, mobile phones and electric vehicles.

About 80 per cent of the most easily obtained supply is located in three Latin American countries – Argentina, Chile and Bolivia. But the leading producers include several Canadian junior resource companies.

Which is one reason Mr. Bethel is extremely bullish on Canada’s prospects. His investing advice: “I would buy Canadian dollars and Canadian bonds. I would also look at select mining companies on the TSX, [specifically] junior miners that are looking to sell to a Chinese company.” (He is an adviser to some of these small players, including Rio Cristal Resources of Vancouver, which has zinc interests in Peru and recently named him to its board.)

“You are at the epicentre of where all good things are going to happen for the next few decades,” he says confidently.

That’s high praise. We can only hope it provides some solace as the global picture darkens.