The Impact of Sino-Us Trade Friction on China’s Argo-forest Products: Stylized Facts and Prospect

Abstract

Sino-US trade friction is a crucial issue in the economic relationship between China and the USA. This paper analyzes how friction influences the bilateral trade of agroforestry products from the perspective of changes in trade volume, using recent-year data. The results show that Sino-US trade friction dissevers and reconstructs the global value chain of agroforestry products. This variation imposes more harm than good on the related global trade pattern. Furthermore, this paper lists and illustrates three measures taken by the Chinese government to deal with the trade friction: expanding the alternative market to meet domestic demand and fill the supply gap, improving the added value to ameliorate the structure of foreign trade and enhancing core competitiveness, and establishing an early warning mechanism to guard against abnormal changes in the international market and increase trade security. Finally, in response to the situation of trade friction, this paper puts forward two politically-sound suggestions that should be adopted by China and the USA for rebuilding a mutually beneficial pattern: negotiating rationally and following the rules of the WTO.