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Disapproval rating, VIX index, COVID-19 cases and Trump’s tweeting against China

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  • Kun Lang
  • Alexander Xincheng Li

Abstract

The primary goal of this paper is to provide empirical evidence for how non-trade factors attribute to the China-US trade war. Trump’s tweets provide us with a unique perspective. After analysing 31,166 Trump’s tweets, we have the following findings: (1) It’s non-trade factors rather than trade-related factors that can significantly predict whether Trump posts negative tweets involving China’s economic and trade issues. For every 1$$\% $$% increase in Trump’s disapproval rating and VIX index, the likelihood of Trump posting negative tweets involving China’s economic and trade issues increases by 0.61$$\% $$% and 0.16$$\% $$% respectively. (2) Tweeting against China sometimes becomes a tool to divert domestic criticism. After the COVID-19 outbreak, the higher growth rate of cumulative COVID-19 confirmed cases, the higher likelihood of Trump tweeting against China. (3) Tweeting against China can win public support and attention. Holding everything else constant, the number of likes and retweets of negative tweets about China are 10.2$$\% $$% and 14.6$$\% $$% more than those of positive tweets about China.

Suggested Citation

  • Kun Lang & Alexander Xincheng Li, 2022. "Disapproval rating, VIX index, COVID-19 cases and Trump’s tweeting against China," Applied Economics Letters, Taylor & Francis Journals, vol. 29(14), pages 1306-1312, August.
    • Handle: RePEc:taf:apeclt:v:29:y:2022:i:14:p:1306-1312
    DOI: 10.1080/13504851.2021.1927956
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