The Negative Impact of the U.S. - China Trade War on Chinese Firms

32 Pages Posted: 23 Aug 2019

See all articles by Felipe Benguria

Felipe Benguria

University of Kentucky - Gatton College of Business and Economics

Date Written: August 20, 2019

Abstract

This paper examines the effect of the U.S-China trade war on Chinese firms. I use quarterly data on more than two thousand listed firms to document that firms in industries with a higher share of output exported to the U.S. have had lower revenue and profits since the start of the trade war. This has been especially the case for businesses producing consumer and industrial durables. U.S. tariffs have had heterogeneous impacts on Chinese firms, hurting mostly larger firms. To a smaller extent, Chinese tariffs have benefited firms of all sizes equally.

Keywords: U.S. - China Trade War, Trade Policy, Tariffs, Firm-Level Data

JEL Classification: F1

Suggested Citation

Benguria, Felipe, The Negative Impact of the U.S. - China Trade War on Chinese Firms (August 20, 2019). Available at SSRN: https://ssrn.com/abstract=3440292 or http://dx.doi.org/10.2139/ssrn.3440292

Felipe Benguria (Contact Author)

University of Kentucky - Gatton College of Business and Economics ( email )

550 South Limestone
Lexington, KY 40506
United States

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