US-China Decoupling: Some Evidence of Changing Trade
Abstract
The trade relationship between the United States and China has been mutually beneficial and has seen significant transformations over recent years. Historically characterized by robust interconnectedness, this relationship is now at risk of being dismantled due to the U.S.'s perception of China breaching international trade agreements. In response, the U.S. has imposed tariffs and other restrictions on China to compel compliance with trade obligations.
This paper investigate whether trade policies associated with decoupling are impacting the trade of semiconductors between the U.S. and China. To address this question, the study employs panel data spanning from 2013 to 2022, examining both total exports and imports as well as specific data on semiconductor trade.
Through this approach, the paper seeks to provide insights into the effectiveness of the decoupling strategy on the semiconductor industry, offering valuable implications for policymakers and stakeholders in the tech industry. The trade relationship between the United States and China has been mutually beneficial and has seen significant transformations over recent years. Historically characterized by robust interconnectedness, this relationship is now at risk of being dismantled due to the U.S.'s perception of China breaching international trade agreements. In response, the U.S. has imposed tariffs and other restrictions on China to compel compliance with trade obligations.
This paper investigate whether trade policies associated with decoupling are impacting the trade of semiconductors between the U.S. and China. To address this question, the study employs panel data spanning from 2013 to 2022, examining both total exports and imports as well as specific data on semiconductor trade.
Through this approach, the paper seeks to provide insights into the effectiveness of the decoupling strategy on the semiconductor industry, offering valuable implications for policymakers and stakeholders in the tech industry.