When a China-phile like investing guru Jim Rogers becomes skeptical about investing in China, you know there’s a problem.

“I’m not buying any stocks in China. The market has more than doubled in the last nine months, and I don’t like to jump onto a moving train,” Rogers told Bloomberg.

Rogers says the best way to play China now is to buy commodities because the Chinese have no choice but to buy them.

However, he also notes that some parts of the Chinese economy are booming and will continue to boom no matter what.

“If you’re in the water treatment business in China, you’re going to make a fortune,” he observes. “China has a horrendous water problem.”

Rogers believes the Chinese government spends money far more effectively than its U.S. counterpart.

“They’re doing things which are going to make them more competitive,” as opposed to presidents Obama and Bush, who “were just spending on make-work projects which are not going to do much good in the long term,” Rogers says.

According to former Morgan Stanley chief Asian economist Andy Xie, China may cut growth in new loans by half in the last six months of this year in order to deflate a stock market bubble.

“The government is worried that this bubble is becoming too big so they’re going to cut credit growth by probably half,” Xie told Bloomberg.

“I think the property and stock markets will come under pressure probably around October.”