Import Competition and U.S. Sentiment Toward China

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.

Arezki R., Nguyen H., Le D. T., Nguyen H. (2024) «  Import Competition and U.S. Sentiment Toward China », CERDI Working Papers 2024/2.