US Economic Sanctions Against China: Who Gets Hurt?

The United States maintains a broad spectrum of economic sanctions against China ranging from export controls to prohibitions on certain imports. Our study finds that, although from a macroeconomic perspective, US sanctions have had no significant adverse effect on China's overall economic grow...

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Bibliographic Details
Published in:World economy 2004-07, Vol.27 (7), p.1047-1081
Main Authors: Yang, Jiawen, Askari, Hossein, Forrer, John, Teegen, Hildy
Format: Article
Language:English
Subjects:
China
Communist Societies
Economic Development
Economic sanctions
Effects
Embargo
Export controls
Exports and Imports
Foreign direct investment
Foreign Policy
Globalization
International Trade
Peoples Republic of China
Sanctions
Statistical analysis
Studies
Technology
Technology transfer
Trade
Trade relations
U.S.A
United States of America
US exports
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Summary:The United States maintains a broad spectrum of economic sanctions against China ranging from export controls to prohibitions on certain imports. Our study finds that, although from a macroeconomic perspective, US sanctions have had no significant adverse effect on China's overall economic growth and trade between the two countries, they do have a negative impact on producers and consumers in both countries. US economic sanctions have hindered technology transfer to China and US investment in China. US restrictions on imports from China have caused deadweight losses for the US due to higher domestic production costs for import substitutes and a reduction in consumption. US export controls have hindered US exports to China and contributed to large US trade deficits with China. The export controls have also caused losses of high‐paid jobs in the United States and benefited competitors from other countries. In addition, US economic sanctions against China have had significant third‐party effects. China's diversification of imports to sources other than the United States may have a long‐term effect on US exports to China even after US economic sanctions against China are lifted.
ISSN:0378-5920
1467-9701
DOI:10.1111/j.1467-9701.2004.00640.x