The Impacts of the U.S. Trade War on Chinese Exporters

Yang Jiao · Zhikuo Liu · Zhiwei Tian · Xiaxin Wang

151 citations0/0 files storedThe Review of Economics and Statistics

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Global trade and economics International Business and FDI COVID-19, Geopolitics, Technology, Migration

Abstract

Abstract This paper studies the impacts of the 2018 U.S. tariff surges on export prices and adjustments of sales across different markets of Chinese exporters. The finding that U.S. tariffs did not affect the free-on-board price of Chinese exports is robust to controlling for firm-related fixed effects. While firms’ exports to the United States dropped significantly, exports to the EU increased moderately and domestic sales or exports to other foreign markets were barely affected. Finally, by surveying managers of exporting firms, we shed light on potential impediments to firms’ adjustments of export prices and sales.

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References

2004Export Versus FDI with Heterogeneous Firms 1993An Empirical Assessment of the Proximity-Concentration Tradeoff between Multinational Sales and Trade 2004The Long and Short of the Canada-U.S. Free Trade Agreement 2019The Return to Protectionism*2017Policy Uncertainty, Trade, and Welfare: Theory and Evidence for China and the United States 2019The Impact of the 2018 Tariffs on Prices and Welfare 2010The Role of Intermediaries in Facilitating Trade 1992Endogenous market structures in international trade (natura facit saltum)

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