FDI is one thing, but remember China, before the trade war even starts, has began to remove benefits from the foreign companies and replace them with domestic c

FDI is one thing, but remember China, before the trade war even starts, has began to remove benefits from the foreign companies and replace them with domestic companies. A larger picture here is China is going through its own deleveraging campaign. They can't take more debt to stimulate the economy. Traditionally the government would ramp up massive investments in infrastructure or just remove the control over the overheated housing market. Both of those approaches are now out of the table. The infrastructure result in big debt, while the housing bubble is already the biggest probably in human history. It is unfortunate for the Chinese government to run into the trade war with US now, but it only accelerates the coming of the inevitable, the delayed reckoning. But China is big enough to make its problem, the world's problem, just like US. It won't be the first to fall in this game, even though it might start it.