The Negative Impact of the U.S. - China Trade War on Chinese Firms
32 Pages Posted: 23 Aug 2019
Date Written: August 20, 2019
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
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