Export response to technical barriers to trade: evidence from high-tech exports of China to the United States

Abstract

This study explores the impact of technical barriers to trade (TBTs) on China’s high-tech exports to the United States (US). We use the UN Comtrade database and the WTO/TBT-SPS Notification and Enquiry of China for the period 2003 to 2018 to quantify TBTs and estimate their effects. Overall, our findings support and are in line with the demand-enhancing promoting effects of TBTs on China’s high-tech exports, indicating that TBTs can act as a catalyst for quality upgrading. However, our findings also suggest the potential of a diminishing promoting effect, possibly caused by the negative impact from the newly imposed TBTs on exports. Our study highlights the need for policymakers and producers in China to carefully consider the impact of TBTs on their exports and invest in product upgrades to enhance their competitiveness in order to meet the increasing technical standards requirements of the US.