Why China Has Already Lost the Trade War

China is dependent on exports to the US and foreign exchange reserves

Workers unload goods from a ship at the port in Lianyungang, east China's Jiangsu province on Feb. 12, 2014. China's trade surplus rose 14.0 percent year-on-year in Jan. to 31.86 billion USD, official figures showed as exports increased 10.6 percent to 207.13 billion USD, while imports were up 10.0 percent to 175.27 billion USD, the General Administration of Customs said. Photo credit should read STR/AFP/Getty Images

The major developed economies have allowed China to get away with its protectionism and interventionism measures because it was the engine of growth of the world economy.

Many talk about trade war as if it were something new and unexpected, but it’s not. The world has been in a trade war for years. The United States has denounced trade barriers imposed by China, the European Union, and other countries for many years, and the World Trade Organization did little about it. The 2017 National Trade Estimate Report on Foreign Trade Barriers filled more than 70 pages outlining direct barriers imposed on the export of U.S. goods and services.