Analysis of The Impact of Sino-US Trade Friction on The Export Competitiveness of China’s Electronic Products Based on Simultaneous Equations Model

Abstract

Trade friction refers to the conflicts and disputes in various fields such as trade and economic policies between trading nations in order to safeguard their political and economic interests. With the acceleration of globalization, there are more and more trade frictions between China and the United States, and the electronic industry is one of the main industries affected by it. Therefore, studying the influence of sino-us trade friction on the export competitiveness of electronic products in China is of great significance to eliminate or reduce sino-us trade friction and improve the competitiveness of China's electronic products exports. This paper first introduces the causes, evolution and main types of sino-us trade friction, and then analyzes the main industries affected by sino-us trade friction and predicts its development trend. Then, after defining the scope of electronic products studied in this paper, the export status and competitiveness of electronic products in China are analyzed, and the export competitiveness indicator is selected. Finally empirical analysis mainly is divided into two parts.The first part through the establishment of simultaneous equations model to prove the sino-us trade friction's influence on China's electronic products export competitiveness; in the second part, the influence factors of sino-us trade friction will be combined with electronic products export competitiveness, using multiple regression model to find out which factors of sino-us trade friction have a decisive influence on the export competitiveness of China's electronic products. The empirical results show that sino-us trade friction can positively promote the competitiveness of China's electronic products export. Trade deficit, the U.S. unemployment rate, the U.S. central government debt situation and China's economic growth rate played a decisive role.