Technological Progress Trigger Trade Friction with China:Based on Industrial Level

DENG Lu; LIU Wei-tao

Volume 34 Issue 2

May 2021

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DENG Lu, LIU Wei-tao. Technological Progress Trigger Trade Friction with China:Based on Industrial Level[J]. Journal of Guangdong University of Finance & Economics, 2019, 34(2): 4-16.

Citation:

DENG Lu, LIU Wei-tao. Technological Progress Trigger Trade Friction with China:Based on Industrial Level[J]. Journal of Guangdong University of Finance & Economics, 2019, 34(2): 4-16.

DENG Lu, LIU Wei-tao. Technological Progress Trigger Trade Friction with China:Based on Industrial Level[J]. Journal of Guangdong University of Finance & Economics, 2019, 34(2): 4-16.

Citation:

DENG Lu, LIU Wei-tao. Technological Progress Trigger Trade Friction with China:Based on Industrial Level[J]. Journal of Guangdong University of Finance & Economics, 2019, 34(2): 4-16.

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Technological Progress Trigger Trade Friction with China:Based on Industrial Level

DENG Lu¹,
LIU Wei-tao²

1.
National Economics Research Center, Guangdong University of Finance & Economics, Guangzhou 510320
2.
Guangzhou Urban Strategy Institute, Guangzhou Academy of Social Sciences, Guangzhou 510410, China

Received Date: 2019-02-25
Available Online: 2021-05-29
Publish Date: 2019-04-28

Abstract

Abstract

Increasing trade friction with China is an inevitable phenomenon while China has been integrated deeply into global economy. Technological progress in a certain industry or product may bring comparative advantages to a country's export, but it will also lead to trade frictions between countries. Based on data of trade remedies towards China from 12 important trade partners from 1996 to 2014, this paper empirically examines the impact of trade frictions caused by technological progress in China's industries at industrial level.The results show that the higher the technological progress of the industry is, the greater the possibility that the industry will encounter trade remedies from other countries; the effects of technological progress on trade remedies are characterized by industry heterogeneity and country heterogeneity; the effects of technological progress on trade remedies are more significant in technology-intensive industries and emerging industries; industries with large imports and high import penetration are more likely to suffer real implementation of trade remedies; and developed countries are more sensitive to China's technological progress. In order to cope with frequent trade frictions, China should take advantage of WTO trade dispute mechanism, avoid using policies that easily lead to trade remedies, strengthen self-dependent innovation, enhance the cost-effective advantage of export products, and proactively explore more emerging trade markets.
- technical progress,
- international trade,
- Sino-US trade,
- trade friction,
- trade remedy,
- trade welfare

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References(25)

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