China's political system is nothing that a good old style capitalistic bust can't take out in a decade or so. The USSR never recovered from the inflationary late 70s. Japan's state-induced credit boom economy never recovered from the early 90s deflationary bust. Dictatorships/state controlled economies are still economies.

As Hyman Minsky would agree - there's only one way to handle volatility, take it in your face. You can't suppress it.