One of Germany's top independent economic advisers has warned that the Chinese government is losing control of its economy following weeks of severe volatility in financial markets.
The gyrations in financial markets are a serious concern for the euro zone's largest economy and the currency bloc in general given the sheer economic heft of China, Lars Feld, who is one of Germany's "wise men" or state-appointed panel of high-profile academics, said.
"I am very much concerned with situation in China, it is a much more important problem then Greece is for the euro zone because when you see this transformation of the Chinese economy, liberalization in several respects and to the extent that the liberalization is a taking place, the Chinese government is losing control of the economy," Feld, who also serves as a Professor for Economic Policy at the University of Freiburg, told CNBC.
"It is going to be much more difficult to counteract any adverse effects of its economy. This is definitely going to affect the German economy," he said, with Germany in particular in the firing line due to its high volume of exports and trade links with China.