Import competition and U.S. sentiment toward China

Rabah Arezki, Duong Le, Ha Nguyen and Hieu Nguyen
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Rabah Arezki: John F. Kennedy School of Government - Harvard University, CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne, FERDI - Fondation pour les Etudes et Recherches sur le Développement International
Duong Le: VNU-HCM - Vietnam National University Ho Chi Minh
Ha Nguyen: International Monetary Fund (IMF)
Hieu Nguyen: WUSTL - Washington University in Saint Louis

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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 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: China; United states; Import (search for similar items in EconPapers)
Date: 2026-04-01
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Published in Journal of International Money and Finance, 2026, 164, pp.103540. ⟨10.1016/j.jimonfin.2026.103540⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05603954

DOI: 10.1016/j.jimonfin.2026.103540

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