China may have just dodged a major bullet... for now.

"We had a senior official, [Liu Shiyu] on the sidelines of the Communist Party's 19th National Congress in Beijing, saying that President Xi JinPing foiled a coup, explained Gordon Chang, best-selling author of Nuclear Showdown and a columnist for the Daily Beast.

While Chang personally does not think a coup took place, he does see it as a very bad sign.

"Xi Jingping is upping the cost of losing a political struggle," Chang told TheStreet on Monday.

"[W]e can see China tearing itself apart as the political struggles become more intense and that's why I'm concerned about political stability. Maybe not this month...but they will be more vicious than we have seen in the past couple of decades," Chang explained.

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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.