The Chinese yuan extended its slide and finished the mainland session at its lowest level of the year. It is one of the weakest in the region this month. The onshore yuan has depreciated 1.9% against the dollar so far, and the offshore yuan has fallen slightly more (2.1%). Only the Korean won and Thai baht fell more (3.5% and 2.9%, respectively). 

While many if not most economists and business journalists are critical of the US claim that Canada, the EU, and Japan steel and aluminum exports are threatening US national security, and tend to think tariffs more broadly are counter-productive, the move against China seems to enjoy widespread support. The disagreement is over tactics.  

Napolean warned of the dangers of China awakening. Well, it has awoken, and it is disruptive to the trade and financial relationships that prevailed. Many American politicians and journalists attribute it China’s disregard for the rules of engagement laid out by the WTO. There is merit in this claim, but it is exaggerated on two grounds.  

First and foremost, even if China played by the rules, the US would still feel threatened by its rise, as its share size makes it a major player and rival. The fact of the matter is it is not good enough for many Americans that the economy has never been larger. Many find it irksome if not threatening that its share of the world economy is shrinking.  

Second, China is not the only country that bends the rules when possible and breaks them when it can get away with it. Is that the all the large powers behave, gaming the rules to their benefit.China may be egregious than other developed countries, but the US nor more than China can have it both ways. Many Americans want to hold China to the standards of developed countries when it suits, but at the WTO, the US insists China is not a market economy. China wants to be a market economy for WTO purposes but given consideration for being a developing country in other respects.