Renewed fears about a slowdown in China struck fear into global markets this week. While some traders fret about Chinese stock markets, changes in the country's economy will continue to have a strong effect on commodities, said Bob Hormats, vice chairman of consulting firm Kissinger Associates.
Stocks around the globe fell broadly Monday, the first trading day of 2016, after a nearly 7 percent drop in Chinese stocks triggered a trading halt. While markets recovered slightly Tuesday, concerns linger about the health of the Chinese economy.
Hormats, a former Goldman Sachs vice chairman, said Tuesday that Beijing's ability to implement "market-oriented reforms" is the "key" in China. As the country's economy transitions, its diminishing status as a "large marginal buyer" of commodities could continue to drag on emerging market economies, he contended.
"They haven't been that for a while. They won't be that in the future so commodity prices are likely to remain relatively weak," he told CNBC's "Closing Bell."