How is U.S. Trade Policy Towards China Determined?
China Economic Review 27 (2013) 25–36
12 Pages Posted: 14 Apr 2016
Date Written: Dec. 1, 2013
Utilizing a political economy approach towards trade policy formulation, we examine the case of how the U.S. House voted on the PNTR status for China. Our focus is to analyze the factors affecting the legislators' voting behavior and to deduce the rationale behind these factors. We find that the U.S. trade policies towards China represent a balanced equilibrium based on interactions between the government and special interest groups. The individual characteristics of the legislators were not important in the process. Predictions of neo-classical trade models regarding the attitudes of various groups on trade liberalization could not be fully validated in the voting outcome of the PNTR bill.
Keywords: U.S. trade policy towards China; The PNTR bill; Interest group; Political contributions
JEL Classification: F13; B41; D72
Suggested Citation: Suggested Citation