Market mayhem will not affect broader economy

Wages are rising, which is fueling domestic demand, and the creation of non-agricultural jobs is strong, particularly in the creative sectors of telecommunications, technology and media, or TMT. The rise of the middle class is also attracting multinational companies from all over the world.

Obviously, there are still challenges ahead, but these are being addressed. Last week, the People's Bank of China, or central bank, cut its key lending rate by 0.25 percent to 4.6 percent.

In a statement, it cited "downward pressure" on economic growth and pointed out that this would reduce financing costs for companies and promote a "sustainable and healthy economy".

The PBOC also promised to pay close attention to liquidity, or the availability of credit, in a move to ease concerns that a rise in capital outflows from China might stifle lending.

But more still needs to be done. At the macro level, China has to gradually reduce its debt burden, which exceeds 250 percent of GDP.

Moreover, the country needs to accelerate efforts to increase domestic consumption.

While it continues to rise, it is still below other nations as a share of GDP. Even so, the rest of the world needs to factor in China's "new normal" growth patterns, and give the country time to continue its economic reforms.