China–U.S. Trade Friction and China’s Agricultural Machinery Imports: Mechanism and Empirical Evidence

Based on the monthly panel data of China’s imports of agricultural machinery products from 2016–2022, this paper uses a multi-period double-difference model to assess the impact of China’s imposition of counter-tariffs on China’s imports of agricultural machinery in the context of U.S.–China trade f...

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Main Authors: Xinyi Li, Meng Zhang
Format: Article
Language:English
Published: MDPI AG 2024-09-01
Series:Agriculture
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Online Access:https://www.mdpi.com/2077-0472/14/9/1517
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author Xinyi Li
Meng Zhang
author_facet Xinyi Li
Meng Zhang
author_sort Xinyi Li
collection DOAJ
description Based on the monthly panel data of China’s imports of agricultural machinery products from 2016–2022, this paper uses a multi-period double-difference model to assess the impact of China’s imposition of counter-tariffs on China’s imports of agricultural machinery in the context of U.S.–China trade friction. It is found that China’s implementation of counter-tariffs significantly reduces China’s imports of agricultural machinery products from the U.S. and significantly increases imports from 16 other countries, but the trade diversion effect is lower than the trade suppression effect. Mechanism analysis finds that China–U.S. trade friction affects the technological innovation capacity of agricultural machinery enterprises and the degree of uncertainty in the Chinese economy, which in turn affects China’s agricultural machinery imports. Heterogeneity analysis finds that China–U.S. trade friction has a more significant inhibitory effect on seeding and planting and fertilizing machinery, drainage, irrigation, and water lifting machinery, and other machinery imported from the U.S., and a more significant diversionary effect on agricultural primary processing machinery and harvesting machinery imported from 16 other countries. The imposition of countervailing tariffs mainly affected imports of complete machinery products rather than machinery spare parts.
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spelling doaj-art-a7c6954e953d4a1784bf7cea67dabcc12025-08-20T01:56:09ZengMDPI AGAgriculture2077-04722024-09-01149151710.3390/agriculture14091517China–U.S. Trade Friction and China’s Agricultural Machinery Imports: Mechanism and Empirical EvidenceXinyi Li0Meng Zhang1Nanjing Institute of Agricultural Mechanization, Ministry of Agriculture and Rural Affairs, Nanjing 210014, ChinaNanjing Institute of Agricultural Mechanization, Ministry of Agriculture and Rural Affairs, Nanjing 210014, ChinaBased on the monthly panel data of China’s imports of agricultural machinery products from 2016–2022, this paper uses a multi-period double-difference model to assess the impact of China’s imposition of counter-tariffs on China’s imports of agricultural machinery in the context of U.S.–China trade friction. It is found that China’s implementation of counter-tariffs significantly reduces China’s imports of agricultural machinery products from the U.S. and significantly increases imports from 16 other countries, but the trade diversion effect is lower than the trade suppression effect. Mechanism analysis finds that China–U.S. trade friction affects the technological innovation capacity of agricultural machinery enterprises and the degree of uncertainty in the Chinese economy, which in turn affects China’s agricultural machinery imports. Heterogeneity analysis finds that China–U.S. trade friction has a more significant inhibitory effect on seeding and planting and fertilizing machinery, drainage, irrigation, and water lifting machinery, and other machinery imported from the U.S., and a more significant diversionary effect on agricultural primary processing machinery and harvesting machinery imported from 16 other countries. The imposition of countervailing tariffs mainly affected imports of complete machinery products rather than machinery spare parts.https://www.mdpi.com/2077-0472/14/9/1517China–U.S. trade frictiontariff countermeasuresagricultural machine importsproduct structureheterogeneity analysis
spellingShingle Xinyi Li
Meng Zhang
China–U.S. Trade Friction and China’s Agricultural Machinery Imports: Mechanism and Empirical Evidence
Agriculture
China–U.S. trade friction
tariff countermeasures
agricultural machine imports
product structure
heterogeneity analysis
title China–U.S. Trade Friction and China’s Agricultural Machinery Imports: Mechanism and Empirical Evidence
title_full China–U.S. Trade Friction and China’s Agricultural Machinery Imports: Mechanism and Empirical Evidence
title_fullStr China–U.S. Trade Friction and China’s Agricultural Machinery Imports: Mechanism and Empirical Evidence
title_full_unstemmed China–U.S. Trade Friction and China’s Agricultural Machinery Imports: Mechanism and Empirical Evidence
title_short China–U.S. Trade Friction and China’s Agricultural Machinery Imports: Mechanism and Empirical Evidence
title_sort china u s trade friction and china s agricultural machinery imports mechanism and empirical evidence
topic China–U.S. trade friction
tariff countermeasures
agricultural machine imports
product structure
heterogeneity analysis
url https://www.mdpi.com/2077-0472/14/9/1517
work_keys_str_mv AT xinyili chinaustradefrictionandchinasagriculturalmachineryimportsmechanismandempiricalevidence
AT mengzhang chinaustradefrictionandchinasagriculturalmachineryimportsmechanismandempiricalevidence