Why Not to Worry About China (Too Much)

This week's holiday to commemorate the end of World War II couldn't have come at a better time. For a global financial system traumatized by recent gyrations in China, the closure of mainland markets is a chance to take a breath and remember that the world is most likely not on the verge of another crisis.

There's certainly more volatility ahead, perhaps as soon as Monday when markets reopen, and there are many reasons to worry. As Asia's biggest trading partner, China is wreaking particular havoc in emerging nations as its once-voracious demand for commodities declines. The mainland's $10 trillion economy, meanwhile, is a black box. No one outside President Xi Jinping's inner circle really knows how close China is to the brink, or what policy tools are being marshaled to avert a crisis.