SHANGHAI -- "Markets with Chinese characteristics" are as volatile and hard to control as markets with American characteristics. Markets invariably take on a life of their own; they cannot be easily ordered around. To the extent that markets can be controlled, it is through setting the rules of the game in a transparent way. The policy approach China adopts will strongly influence economic performance and prospects worldwide.
SINGAPORE -- This summer, for the first time, financial turmoil in China created turbulence around the world and even hit New York. This was an historic event and is a portent of things to come. Yes, China fumbled. It could have avoided certain obvious mistakes which many saw coming, but the Chinese will learn from it. What the episode shows is how the relative weights are shifting in the world way beyond just trade.
After the devaluation of the yuan and the dive in China's stock exchanges, the blowback on American markets and the presidential candidates lining up to blame China, President Xi Jinping may be wishing he'd booked his visit for another time. But now is the perfect opportunity to set the record straight. The latest round of China bashing overestimates China's clout and distorts our discourse.