The impacts of the China–US trade war on China’s trade and greenfield investment

Haichao Fan, Guangyuan Guo and Caiyun Wu

Economic and Political Studies, 2024, vol. 12, issue 4, 383-398

Abstract: We assess the impacts of the China–US trade war on the bidirectional trade and investment flows of China. We find that China’s exports and imports both dropped sharply after the trade war began. In terms of investment flows, we find that China’s greenfield investment in the US faltered in the face of the increasing trade friction, but the impact of the trade war on the US’s greenfield investment in China is ambiguous. In addition, the trade friction only impeded the export volumes of China and had an insignificant impact on the export prices. In contrast, both the import volumes and prices for China decreased.

Date: 2024
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DOI: 10.1080/20954816.2024.2341343

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