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How is U.S. trade policy towards China determined?

Author

Listed:
  • Wang, Xiaosong
  • Li, Kunwang
  • Xie, Shenxiang
  • Hou, Jack

Abstract

Utilizing a political economy approach towards trade policy formulation, we examine the case of how the U.S. House voted on the PNTR status for China. Our focus is to analyze the factors affecting the legislators' voting behavior and to deduce the rationale behind these factors. We find that the U.S. trade policies towards China represent a balanced equilibrium based on interactions between the government and special interest groups. The individual characteristics of the legislators were not important in the process. Predictions of neo-classical trade models regarding the attitudes of various groups on trade liberalization could not be fully validated in the voting outcome of the PNTR bill.

Suggested Citation

  • Wang, Xiaosong & Li, Kunwang & Xie, Shenxiang & Hou, Jack, 2013. "How is U.S. trade policy towards China determined?," China Economic Review, Elsevier, vol. 27(C), pages 25-36.
  • Handle: RePEc:eee:chieco:v:27:y:2013:i:c:p:25-36
    DOI: 10.1016/j.chieco.2013.07.008
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    References listed on IDEAS

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    1. Hirsch, Adam & Parag, Yael & Guerrero, Josep, 2018. "Microgrids: A review of technologies, key drivers, and outstanding issues," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 402-411.

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    More about this item

    Keywords

    U.S. trade policy towards China; The PNTR bill; Interest group; Political contributions;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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