The stock market sell-off is not the problem. Yes, the Shanghai Composite Stock Index has dropped almost 40 per cent since its June peak, but the Chinese economy has rarely been upset by fluctuations of its financial markets. The problem — not a huge one, but a problem nonetheless — is the Chinese economy itself. It requires corrective action from Chinese authorities — not surgery, but acupuncture.

It is easy to see why markets are unnerved. Trade and exports barely grew in the first half of this year, and in July exports fell significantly. Production of electricity and cement, both of which are consumed locally rather than exported, declined for the first seven months of the year. These signs indicate that the economy is slowing down.

Last month, after months of market pressure, the People’s Bank of China introduced a new mechanism for trading the renminbi, which caused its value to fall and triggered worldwide speculation of further devaluation. Yet this will not help China as much as one might expect. Other countries have also devalued, mitigating any potential benefits to Chinese exporters.