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Protectionism

Industrial subsidies and their impacts on exports of trading partners: the China case


Published 13 July 2021

The impacts of Chinese subsidies interventions are larger and statistically significant for the exports of developed countries, and metal intensive users in the downstream sectors. Using panel data for 137 sectors in 40 major trading partners of the Chinese economy, this paper reveals that a one-unit increase in Chinese subsidies decreases competitors’ exports by an average of 16.6%.

This paper from the University of Adelaide's Institute for International Trade looks at the effect of Chinese base metal subsidies on the export competitiveness of downstream sectors in other major trading countries. An analysis of China's forty biggest trading partners across 137 sectors reveals that a one-unit increase in Chinese subsidies decreases competitors’ exports by an average of 16.6%. The findings of the paper hold particular significance for exports of developed countries and sectors that are intensive users of metal inputs.

Download Industrial subsidies and their impacts on exports of trading partners: the China case by the University Of Adelaide's Institute For International Trade.

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