Management Review

›› 2018, Vol. 30 ›› Issue (5): 218-224.

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Impact of China's Trade Countermeasures on the United States:A Study Based on the Non-competitive Input-occupancy-output Model

Li Xinru1,2, Kong Yishu1,2, Chen Xikang1,2, Zhu Kunfu3, Tian Kailan1,2,4   

  1. 1. University of Chinese Academy of Sciences, Beijing 100049;
    2. Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing 100190;
    3. Research Institute for Global Value Chains, University of International Business and Economics, Beijing 100029;
    4. Faculty of Economics and Business, University of Groningen, Netherland 9700 AB
  • Received:2017-09-10 Online:2018-05-28 Published:2018-05-29

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Abstract:

The rapid development of economic and trade relations has brought huge benefits to China and the US. However, as the new US president took office, Sino-US trade is facing severe challenges. Chinese economy and employment status may suffer substantial nega-tive impacts if the United States raises tariffs extensively, or provokes more frequent trade frictions. China should prepare itself well for the potential aggravation of trade protectionist sentiment. This paper analyzes four actionable trade countermeasures against the United States, including reducing imports of all US goods and services, cutting orders for Boeing airplanes, reducing imports of US soybeans and restricting the number of Chinese tourists to the US. These countermeasures' impacts on US economy and employment are measured u-sing the US non-competitive input-occupancy-output table in 2015. Considering the impacts and feasibilities of the four countermeasures, we recommend that Chinese trade countermeasures against the United States should focus on some key products rather than aim at all commodities.

Key words: China-US trade war, trade countermeasures, input-occupancy-output model