Longstanding frictions between London and Brussels came to a head with security and immigration issues. In the final analysis, the EU needs to bring itself closer to the masses, and respond positively to such public concerns as employment and security. That is the only way for the EU to retain support from member countries and sustain its vitality.

The relationship between China and the United Kingdom was close, especially in economic terms, though as Jonathan Holslag argues, China may need to find a new preferred partner. Europe is at a juncture: it remains to be seen whether frustration about alleged unfair competition from China will lead to a much more protectionist trade policy, whether the European Commission grants China Market Economy Status, and whether a fragmented European position on trade could strengthen China’s own geopolitical position.

China’s stock market and RMB exchange rate both took a hit, but these were obvious reactions to Britain’s surprise vote to leave the EU. This brand of populism will get a boost from the success of the Brexit “Leave” campaign, but the long-term global effects will take years to become clear.

Premier Li Keqiang called on investors to view China with a “calm and cool head” at a time of global uncertainty, voicing confidence that Beijing can handle the slew of problems facing its economy.

China has ample fiscal space to cope with any market turbulence triggered by Britain’s decision to leave the European Union but should limit intervention to alter the yuan’s value, said the head of the Asian Infrastructure Investment Bank.

The EU has long served as a magnifier of the UK’s role in the world. It is hard to imagine how the UK would punch above its weight in today’s world, even for a nation that boasts of past world hegemon status, unrivalled experience in global engagement and continuing hard power.

As the U.K. is preparing for the EU referendum, both Washington and Beijing would like London to remain in the EU. Yet, the outcome is not under their control, despite the potential for regional, even global collateral damage.