China not source of global financial volatility

Although the Chinese economy is slowing down amid headwinds, it is still expanding at one of the fastest speed in the world.

China's GDP has risen to about $10 trillion, and a growth of 7 percent can translate into huge wealth and great opportunities.

Apple's business in China continued to experience strong growth through July and August, with accelerating iPhone activations and the tills ringing in Apple Stores faster than at any other point in the year.

"I continue to believe that China represents an unprecedented opportunity over the long term," said CEO Tim Cook.

Sharing similar optimism, international investor Jim Rogers increased his stakes in Chinese stocks over the last few weeks, amid an epidemic of panic selling.

With growing economic power, China is influencing the rest of the world to an unprecedented degree. But the country is not responsible for everything. If China is not to blame, then who is?

Since the 2008 global financial crisis, many developed countries have pumped a great amount of liquidity into the market and lowered interest rates to nearly zero.

Hot money flowed to emerging markets for higher returns and helped create froth and dampen policymakers' efforts to reduce leverage.

As the US economy is recovering, the federal reserve has hinted that it will hike interest rate this year, prompting international capital to flow back to the United States.

Currencies of emerging markets are under huge depreciation pressure as capital could leave in a large scale. Drastic changes in the value of major currencies make the financial market even more turbulent.

In addition, the prolonged European debt crisis casts a shadow on global economic recovery. Geopolitical issues and terrorism also add uncertainties to the world economy.

The current financial turmoil is a reflection of many complicated problems, most of which arise from Western countries, not from China.

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