Import Competition and U.S. Sentiment Toward China

Rabah Arezki, Duong Trung Le, Ha Nguyen and Hieu Nguyen

No 11044, CESifo Working Paper Series from CESifo

Abstract: We empirically examine how import competition affects sentiment toward China in local communities in the United States using a news-based index for sentiment. Results are threefold. First, U.S. sentiment toward China peaked in 2007 before turning negative. Second, communities more exposed to import competition from China have experienced a greater deterioration in sentiment. Third, the trade-induced U.S. sentiment toward China is broad-based, encompassing political, military, and national security issues. These findings suggest that competition over trade may have important geopolitical implications through sentiment of local communities.

Keywords: import competition; sentiment; fragmentation (search for similar items in EconPapers)
JEL-codes: E24 F14 F16 J23 J31 L60 O47 R12 R23 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-cna, nep-int and nep-ure
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Related works:
Working Paper: Import Competition and U.S. Sentiment Toward China (2024)
Working Paper: Import Competition and U.S. Sentiment Toward China (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_11044

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