When Chinese firms cannot get financing for manufacturing at all or cheap enough, because Chinese banks are hemorrhaging money from real estate, it will create problems for everyone.
CCP and the People's bank of China are not setting monetary policy in a vacuum, the Chinese currency operates within a managed floating exchange and has been internationalizing for last decade, that constraints the actions PBC can take without crashing the currency or the systems they have been building up to make CNY the(a) international reserve currency.
It will hurt, but the sideshow is that a lot of the stuff they make in China may get cheaper for us.