Research on the influence of US QE policy on Sino-US trade

Abstract

This article selects the major international commodity price index, the RMB against the dollar, foreign direct investment in China, the broad money supply of US, China's exports to the US and China’s imports from the US of monthly data from January 2020 to June 2021, using multiple linear regression model to study how the quantitative easing monetary policy of US impact on Sino-US trade during the outbreak of the COVID-19. The empirical results show that international commodity price index has a negative correlation with China's exports to the US and imports from US, the RMB against the dollar has a negative impact to China’s imports from US, the broad money supply of US has a significant positive impact on both China’s export to US and import from US and FDI has a positive impact to China’s imports from US to some extent.