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Import Competition and U.S. Sentiment Toward China

Author

Listed:
  • Rabah Arezki

    (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, Harvard Kennedy School - Harvard Kennedy School)

  • Ha Nguyen

    (International Monetary Fund (IMF))

  • Duong Trung Le

    (World Bank Group)

  • Hieu Nguyen

    (WUSTL - Washington University in Saint Louis)

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.

Suggested Citation

  • Rabah Arezki & Ha Nguyen & Duong Trung Le & Hieu Nguyen, 2024. "Import Competition and U.S. Sentiment Toward China," CERDI Working papers hal-04546270, HAL.
    • Handle: RePEc:hal:cdiwps:hal-04546270
    Note: View the original document on HAL open archive server: https://cnrs.hal.science/hal-04546270
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