This statement gets repeated often, but is never backed up by any convincing evidence.
The fact is, the Chinese government is engaged in a massive urbanization effort. Millions upon millions of people have and will be moving out of rural villages and into cities. This alone means housing prices will not be falling anytime soon in China.
The problem is that those poor people coming from the countryside can't afford any of the houses on offer and many real estate remains empty in the cities. The reason why prices are not falling is that in alot of the cases the bank refuse to put pressure on these developers to repay loans. So the developers can let the houses stay empty and sit out the down turn hoping to sell when the price goes up again. House prices falling will be a good thing for China in the long run even if it causes some short term pains.
If you want to know why all the media are singing from the same hymm sheet when it comes to China or other international issue's. Well there is a reason for that and even a word its called "narrative building". They have divided up the world into the "good guys" and the "bad guys" and for them China falls in to the latter categorie. But to be fair its not just the media in the West that does that all media around the world does that.
To the question rather the West is "after China". I think they would if they could but for now there is nothing they can do about China because China has become too strong. They can't touch countries like China or Russia without cutting deep into their own flesh. But if you think that they won't if they had the chance just look at what they did to Iraq, Yugoslavia, Iran, Libya and now Syria.