China's market is very different than the markets in the developed world for a number of reasons (more isolated, less mature investor base, more direct government involvement, to name a few). So it probably isn't the best barometer for how other markets work.
The stock market operates differently, but China's economy, which is an integral part of the world economy, is still tied directly to the market.
Chinese economic fundamentals (export, import, saving, consuming, government spending) will all be impacted by a failing stock market, which will translate into economic concerns across the globe.
