The Peterson Institute featured a blog post yesterday that highlights a very important point about China that traders and investors are missing. Despite all the concerns about an extreme devaluation, it’s still running a trade surplus–the world’s biggest, actually. Granted, the herd behavior in the markets right now does have the potential to become self-fulfilling, especially if the Fed keeps tightening. But if it doesn’t and markets can return to fundamentals, 6.5% growth, a $300 billion trade surplus, room to move on monetary policy, and low fiscal debt (especially for a country whose debt is predominantly held internally–to see how much fiscal room that gives a country, see Japan’s debt at 230% of GDP) will look plenty appealing to investors. In the medium term, China will likely remain a global bright spot.