US-China Trade Research Articles

A Review of Non-Tariff Measures with Particular Focus on the US and China Practices

The US-China trade war that started with the focus on tariffs has provided impetus for hostilities on the front of non-tariff measures (NTMs) also. The first objective of this paper is to appraise the current knowledge of NTMs with respect to its classification, determinants and importantly its impact on international trade by intensively reviewing the exiting literature on the subject matter. The implementation of NTMs primarily results in negative effect on trade, though some positive effects could also be observed. Secondly, the paper delves into the understanding of the past NTM practices of the US and China, thereby leading to the knowledge on its potential use in the future. Both countries instigated a large number of NTMs towards their trading partners and also against each other. Besides, they have mainly used TBT and SPS aspects of NTMs which are primarily agriculture related products. With the escalation of the trade war, there is a greater likelihood that the scale and scope on the use of NTMs gets amplified.

Reducing Us-China Trade Would Increase Global Emissions in the Short-Term

Reducing Us-China Trade Would Increase Global Emissions in the Short-Term

The Impacts of Carbon Tariffs on International Trade Flows and Carbon Emissions: An Analysis Integrating Trade Elasticities with an Application to Us-China Trade

The Impacts of Carbon Tariffs on International Trade Flows and Carbon Emissions: An Analysis Integrating Trade Elasticities with an Application to Us-China Trade

Modeling Semiconductor Export Restrictions and the US-China Trade Conflict

Modeling Semiconductor Export Restrictions and the US-China Trade Conflict

US-China Trade War and Its Implications on the Global Economy

This editorial proposes three fundamental issues in the international economic field evoked by the US-China trade war. The first is the intensifying conflict between protectionism measures and the coherence with relevant global trade rules. The second is decoupling between the US and China and subsequent evolution in the global production network. The third is the digression in the trade flow between the US and China and the resulting change in innovative capabilities and manufacturing competitiveness among major industrial countries. This editorial also offers the long-term perspective of the current global trade war and how the world encounters repercussion of openness and protectionism as well as times of prosperity and uncertainty.

Has the US-China Trade War Caused Trade Decoupling?

Recently, decoupling between the US and China has emerged as an important issue in global economics. We propose an analytical framework for trade decoupling analysis, borrowing the idea from the production function in non-competitive input-output tables. Using that methodology, we analyze the mobile phone trade network subject to various measures imposed by the US. A scenario analysis is performed to compare the extent of decoupling after a trade war with worst-cases. In bilateral trade, China’s share of total US imports fell significantly in 2019 compared to 2017. However, China’s indirect exports to the US increased during the same period. A similar pattern is observed in the global trade network visualized via multidimensional scaling (MDS). China’s out-degree centrality decreased slightly, while Vietnam’s role expanded. Actual figures for 2019 show a decreased out-degree centrality for Chinese final good exports, but a much higher one in the scenarios. Also, China’s indirect exports to the US have increased. But China does not appear to play a key role in the network as assumed in the scenario. Throughout the study, intermediate goods were treated homogeneously, and further studies considering the heterogeneity of input-output linkages are needed.

BRICS Diplomacy: India-China Relations

The US-China Trade war followed by the global pandemic has reincarnated the diplomatic relations between countries. India-China relations have remained on a roller coaster ride with expectations for the unexpected future. India and China share a cooperative geo-political platform of BRICS and much needs to be assessed with India holding the chairmanship in 2021. The article touches upon the BRICS issues from the perspective of India-China relations as well as the expectations from the current regime. An attempt to decipher India’s stand on key issues such as pandemic cooperation, anti-terrorism, multilateral system reform et cetera is encapsulated in the article.

The Current Dynamics of Us-China Trade and its Implications for the Developing Countries

There has been a lot of acclaim for Presidents Trump and Xi Jinping's strong friendship, as well as support for improving US-Chinese relations. Both leaders can take a variety of steps to safeguard their connections without jeopardising their stated objectives. The causes for the worsening of relations are a source of contention between the two countries. Frustration is growing in the United States as a result of China's apparent disregard for international pleas for Beijing to change its unfair economic practises. Due to the worsening of relations between the two countries, both leaders must make a decision. By portraying the other as the problem, they can achieve their short-term political objectives. The most effective way for Washington to influence how Beijing frames its interests is through regular meetings between leaders. Preventing an unforeseen escalation in tensions may be a major priority for both presidents. Assume that neither side sees an advantage in starting a dispute with the other to reduce the chance of escalation. As a result, the scope of this work is somewhat constrained. That is the goal of this report: to identify tangible initiatives that both governments may take to stabilise their bilateral relationship and avoid a Cold War-style rivalry that benefits neither side but costs both a lot of money. Antagonizing each other in this way increases the potential of conflict and obstructs efforts to address shared problems.

Offshore Balancing as Grand Strategy: Hegemonic Control and Sino-US Trade War; Implications for Pakistan

This paper gives a concise outline of US-China trade and merchandise relations, recognizes significant causes, results or issues of the contention, and gives explicit answers for how to decrease the heightening of such a "battle" between the two financial authoritarians.The Research has used economic data from American and Chinese Governments and elaborated it qualitatively employing post-modernist discourse analysis. All in all, our examination will emphasize emphasize the trade battle between the two nations from an Ideological, authentic and monetary viewpoint, and as it were, to comprehend its causes results and give explicit answers for such a "war", set in this specific circumstance. The point of this paper is to assess the long time outcomes of the worldwide trade and economic war and its effect on the financial improvement of Pakistan.

The impact of Sino-US trade imbalance on the US economy and the trend prediction of Sino–US trade imbalance

The trade friction between China and the United States is a trade problem arising from the difference between China and the United States with regard to the balance of trade and values. As Sino–US trade develops; the trade imbalance is becoming increasingly prominent, which directly leads to the Sino–US trade war. This paper attempts to explore whether the expansion of the US–China trade deficit will result in the slowdown of the US economy and to study the development trend of Sino–US trade imbalance, emphatically discusses the impact of Sino–US trade on US GDP and establishes a model to conduct the trend prediction of Sino–US trade imbalance in the near future. The study proves that there is a two-way and long-term relationship of influence between the trend in the US–China trade deficit and in the US GDP, during which the Sino–US trade contributes to the economic growth in the United States. Meantime, the scale of Sino–US trade imbalance will still increase in the short run.

Port strategy and performance: empirical evidence from major container ports and implications for role of data analytics

ABSTRACT Container ports operate in more challenging and volatile environments at present times. Events such as US-China trade tensions and the COVID-19 pandemic severely affect numerous container ports at various levels. Strategies pursued by container ports are key to port development and management amidst these challenges. Drawing on configuration theory, this research employs Fuzzy-set Qualitative Comparative Analysis to investigate the relation between port strategies and container throughput. The research contributes to the literature by proposing an approach to account for complexity of the port sector and offers insights into strategies adopted by major container ports. The research further identifies 10 port strategies and proposed indicators that can represent the essence of these strategies. Being able to represent strategies in a quantitative format is important for strategy analysis and performance evaluation. Results reveal that major container ports employ a combination of strategies which address both the supply and demand-side aspects of the port business. Growing digitalization and digitization coupled with advancements in information capture, diagnostics capabilities and predictive abilities means a greater role for data analytics to influence container port strategy and performance. Implications for port managers, policy makers and researchers from the perspective of port policy and management are proposed.

Implementation of Economic Policy Facing The China American Trade War In The Framework of Nirmilitary Defense

Non-military defense is a defense to deal with non-military threats that can endanger or have implications for national defense. Non-military threats have the dimensions of ideology, politics, economy, socio-culture, technology, public safety, and legislation. In the main points of the general policy of state defense for 2020-2024, it is stated that in the policy of implementing non-military defense, it is directed to deal with the dimensions and types of threats by determining the ministry/institution as the main element. The United States-China trade war is a policy involving two superpowers that have had a major influence on the global economy to date. The government's policy in dealing with the trade war is the program to attract investors as contained in the 16th Indonesian Economic Policy Package (PKE), including Tax Holiday. The purpose of the study is to provide government input on the implementation of economic policies in the face of the US-China trade war in the context of Non-Military Defense. Research with qualitative methods is aimed at understanding social phenomena from the perspective of the participants. The results achieved are in accordance with the theory of Policy Implementation related to Resources, Communication, Disposition and Bureaucratic Structure, a strategy is needed to revamp the bureaucratic structure and recalculate budget resources.

US-China Trade War Through the Lenses of Theories of International Relations

US-China Trade War Through the Lenses of Theories of International Relations

The Impact of the COVID-19 Pandemic on the Macroeconomic Aggregates of the European Union

Abstract Economic experts’ predictions of a slowdown in the EU’s global economy and economic growth in the year 2020 were based on various risks and uncertainties existing on a world scale, ranging from the US-China trade war, traditionally strained relations of the EU and the US on the one hand and the Russian Federation on the other, all the way to BREXIT and economic migration to developed EU countries. However, the COVID-19 pandemic has further aggravated those forecasts, so that the entire EU is recording a historic decline in all macroeconomic aggregates. The beginning of the pandemic in the EU was accompanied by the complete border lockdown of the entire Union, which greatly affected the economies of the member states. The EU is experiencing a decline of both real and nominal GDP, declining incomes, employment decline and unemployment increase. This paper will investigate the impact of COVID-19 onto GDP, unemployment, and EU public debt. Correlation-regression analysis confirms the positive correlation between these variables and the economic crisis caused by the COVID-19 pandemic. In addition to the economic crisis, a crisis of EU health systems, which requires huge economic investments. A more prominent economic recovery is hard to expect until the global pandemic ends. One thing is for certain, this economic crisis will continue in 2021, whereby a more significant recovery is expected only in the year 2022. Certainly, it will take years to make up for the economic losses caused by the pandemic.

Spillovers and interdependency across base metals: Evidence from China's futures and spot markets

Using the framework of Diebold and Yilmaz (2012, 2014), we examine the spillovers of informational shocks and the connectedness in China's base metals futures and spot markets. We find that base metals tend to generate more total spillovers in the futures market than in the spot market and that individual metals, apart from nickel, have nearly identical directional spillover impacts on or from other base metals in both the futures and spot markets. Copper and zinc act as the pricing centre in both futures and spot markets, where informational innovation is expected to flow from copper and zinc to other metal commodities. According to the dynamic analysis, the US-China trade dispute tends to significantly reduce total spillovers in both the futures and spot markets. We also find that the information transmission channels between base metals in futures and spot markets differ slightly and that the futures market leads the spot market in price discovery.

Impact of Trumpian Trade on Canadian Agriculture: Evidence from Commodity Analyses

It is generally understood that Canada’s close trading relationship with the United States helps power its export-dependent economy. This understanding was challenged in the wake of the US-China trade war that began in 2018. The trade war, which created opportunities for countries to fill the void left by American products in the Chinese market, was a chance for Canada to sink its teeth into China’s need for agricultural commodities. By examining Canada’s trading relationship with China during the trade war at a commodity level across five different products, this paper ascertains the factors that determined why Canadian lobster fishers jumped for joy while canola farmers floundered. This examination exposes how Canada-China tensions arose because Canada’s extradition with the US severely depressed its ability to sell certain agricultural goods to China.

Differential impacts of the US–China trade war and the outbreak of COVID-19 on Chinese air quality

PurposeOver the last couple of years, the Chinese manufacturing sector was affected by the onset of the US–China trade war and the outbreak of coronavirus disease 2019 (COVID-19). In such a scenario air quality in China has encountered a shock, and the impacts of these two incidents are unknown. In this study, the authors analyze the convergence of air quality in China in the presence of multiple structural breaks and how the impacts of these two events are different from each other.Design/methodology/approachIn order to assess the nature of shocks in the presence of multiple structural breaks, unit root tests with multiple structural breaks are employed.FindingsThe results reveal that air quality in China is showing the sign of convergence, and it is consistent across 18 provinces which are worst hit by the outbreak of COVID-19. In the presence of transitory shocks, the impact of COVID-19 outbreak is found to be higher, whereas the impact of the US–China trade war is found to be more persistent. Lastly, the outbreak of COVID-19 has been found to have more impact on pollutants with higher severity of health hazard.Originality/valueTo the best of the authors’ knowledge, this is the first study that contributes to the empirical literature in terms of investigating the convergence of overall air pollution and individual air pollutants taking COVID-19 and the trade war into account.

Appraising with Metaphors: A Case Study of the Strategic Ritual for Invoking Journalistic Emotions in News Reporting of the China–US Trade Disputes

ABSTRACT Most journalism studies of metaphorical emotions attend to the interlocked bond between the selection of source domains and the conceptualization of emotions. It is less common to discuss the evaluative attribute of metaphorical emotions and their function or discourse act. This study examines why metaphorical emotions can realize the empathetic construct and how they are usually invoked in news reports, by drawing on a case study of the English news corpus about the China–US trade disputes. It then argues that, first, metaphors are engineered to perform an evaluative control that works through the deployment of invoking strategies in news reports; second, metaphorical emotions are an integral part of news reports, and are ritually invoked in a particular way: they are predominantly flagged, but rarely provoked and afforded in news reports. The study concludes that a survey of the strategic ritual used for invoking metaphorical emotions can reveal journalists’ act for aligning with readers.

Energy and water embodied in China–US trade: Regional disparities and drivers

Energy and water support the three pillars of sustainable development—the economic, the social, and the environmental—in that they enable poverty reduction, job creation, and human well-being in general. A multiregional input–output model (MRIO) is established to estimate the flows of embodied energy and virtual water in China–US trade in 2015. Then, a structure decomposition analysis (SDA) model is used to analyze the factors affecting the differences in embodied energy and virtual water in China–US trade. There are three notable findings: (1) The net exported embodied energy in China is 94.41 Mtoe (million tons of oil equivalent), and the net exported virtual water is 4.48 Bm3 (billion cubic meters), among which Guangdong province exports the most embodied energy (17.01 Mtoe) and Jiangsu province exports the most virtual water (2.58 Bm3); these exports are mainly concentrated in the metal and nonmetal product sector (embodied energy) and the agriculture sector (virtual water). (2) From the embodied energy perspective, the input–output structure effect (63.93 Mtoe) plays the most important role in increasing the embodied energy differences. However, the final demand per capita (−20.93 Mtoe) is the largest negative factor decreasing the differences in the export of embodied energy. (3) From the virtual water perspective, the input–output structure effect (2.41 Bm3) plays the most important positive role in increasing the differences between China and the US; in contrast, the final per-capita demand (−1.78 Bm3) is the most important negative factor for decreasing the differences in virtual water.

Mercantilism's Groundhog day: The US-China trade war and US energy exports to Northeast Asia

We use detailed quarterly data on US energy exports to examine the impacts of the US-China trade dispute on US energy-related commodity exports. Largely due to the shale revolution, the energy-related US current account balance has been reduced to close to zero, down from accounting for about half of the trade deficit in 2008. This is despite evidence that tariffs on imported energy-related commodities, such as solar panels, did not appear to negatively impact US imports. We estimate a regression of non-energy net exports dependent on gross domestic product, the exchange rate, and past non-energy trade deficit. We argue that the trade war led to a number of distortions that reshaped the US balance of trade in energy-related commodities. The risks of a protracted US-China trade war include slower economic growth, which is compounded by the risks associated with the aftermath of COVID-19.