For China, accepting lower growth provides a crucial opportunity to support stable and sustainable development.

China's leaders should take advantage of the recent respite from instability and low confidence to redouble their economic reform efforts. Otherwise, they can expect alarm bells to begin ringing again.

As China remains among the world's poorest countries, with per capita income amounting to less than $7,000, its position as the world's largest exporter of capital signifies a gross misallocation of resources. It should adopt a float exchange-rate regime as soon as possible.

Although China's leadership succession was completed earlier this year, the policy agenda for the coming decade has only just been revealed at its Third Plenum.