China–U.S. Trade Friction and China’s Agricultural Machinery Imports: Mechanism and Empirical Evidence

Xinyi Li and Meng Zhang ()
Additional contact information
Xinyi Li: Nanjing Institute of Agricultural Mechanization, Ministry of Agriculture and Rural Affairs, Nanjing 210014, China
Meng Zhang: Nanjing Institute of Agricultural Mechanization, Ministry of Agriculture and Rural Affairs, Nanjing 210014, China

Agriculture, 2024, vol. 14, issue 9, 1-22

Abstract: Based on the monthly panel data of China’s imports of agricultural machinery products from 2016–2022, this paper uses a multi-period double-difference model to assess the impact of China’s imposition of counter-tariffs on China’s imports of agricultural machinery in the context of U.S.–China trade friction. It is found that China’s implementation of counter-tariffs significantly reduces China’s imports of agricultural machinery products from the U.S. and significantly increases imports from 16 other countries, but the trade diversion effect is lower than the trade suppression effect. Mechanism analysis finds that China–U.S. trade friction affects the technological innovation capacity of agricultural machinery enterprises and the degree of uncertainty in the Chinese economy, which in turn affects China’s agricultural machinery imports. Heterogeneity analysis finds that China–U.S. trade friction has a more significant inhibitory effect on seeding and planting and fertilizing machinery, drainage, irrigation, and water lifting machinery, and other machinery imported from the U.S., and a more significant diversionary effect on agricultural primary processing machinery and harvesting machinery imported from 16 other countries. The imposition of countervailing tariffs mainly affected imports of complete machinery products rather than machinery spare parts.

Keywords: China–U.S. trade friction; tariff countermeasures; agricultural machine imports; product structure; heterogeneity analysis (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2077-0472/14/9/1517/pdf (application/pdf)
https://www.mdpi.com/2077-0472/14/9/1517/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jagris:v:14:y:2024:i:9:p:1517-:d:1470773

Access Statistics for this article

Agriculture is currently edited by Ms. Leda Xuan

More articles in Agriculture from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().