How does the US-China trade war affect China?

1 At the height of the ‘tariff war’ in September 2019, US tariffs on China had increased by 20.7 percentage points for the average HS 6-digit product; these affected 14.2\% of the 2017 value of China’s total exports.

What are the three main causes of US-China trade war?

The authors identify four main reasons that led to the greatest trade conflict between the two economies in history associated with intentions of the US: a) to reduce the deficit of bilateral trade and increase the number of jobs; b) to limit access of Chinese companies to American technologies and prevent digital …

How has the US-China trade war affected the US economy?

Between July 2018 and August 2019, the United States announced plans to impose tariffs on more than $550 billion of Chinese products, and China retaliated with tariffs on more than $185 billion of U.S. goods. The trade war caused economic pain on both sides and led to diversion of trade flows away from both China and the United States.

Do trade talks with China affect US consumer sentiment?

Next, turning to the relations variable, we find that trade talks or other events with a positive connotation for the US-China relations have a significantly negative effect on US consumer sentiment that becomes more pronounced as such events become more frequent.

Is China’s multilateral liberalisation better than a trade war?

Simulation results show that the US is better off with China’s multilateral liberalisation relative to a trade war, but less so than with managed trade because it does not get preferential access to the Chinese market (Figure 4). This is due to a negative terms of trade effect for the US.

Should China accommodate US demands for trade?

If China accommodates US demands by granting it privileged access to a still-protected Chinese market, then the US will benefit but other countries and probably China will lose. If instead, China accommodates US demands by liberalising access to its market for all trading partners, then all countries, including the US and China, would benefit.