{
  "title": "Trade Implications of China's Subsidies",
  "publication": "IMF Working Papers, August 23, 2024",
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  "summary": "Available data show a marked increase in subsidy utilization in China and in other major economies between 2009 and 2022. In this paper, we investigate the effects that China's subsidies have on international trade flows at the product level over this period.",
  "sections": [
    {
      "heading": "Summary of study and scope",
      "content": "- Available data show a marked increase in subsidy utilization in China and in other major economies between 2009 and 2022.\n- The paper investigates effects of China's subsidies on international trade flows at the product level over the period 2009–2022.\n- Analysis includes product-level trade flows, supply-chain linkages, and decomposition into price and quantity effects."
    },
    {
      "heading": "Main empirical findings",
      "content": "- Subsidies promoted Chinese exports and limited imports.\n- Supply-chain linkages magnify effects: subsidies given to upstream industries expand significantly the exports of downstream industries.\n- Price and quantity decomposition at the product level:\n  - China's subsidies lowered export prices and boosted export quantities in certain sectors, including:\n    - metal products\n    - furniture\n    - autos\n  - In other sectors, evidence is more consistent with quality upgrading rather than price-driven volume expansion, notably:\n    - electrical machinery"
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Export prices, Export subsidies, Exports, Imports, International trade, Prices\n- Keywords: China, China's subsidy, Domestic subsidies, Export prices, Export subsidies, Exports, exports of downstream industry, Global, Imports, International trade, metal products, Overcapacity, Spillovers, supply-chain linkage, trade implication\n\nIMF Working Paper: \"Trade Implications of China's Subsidies\" by Lorenzo Rotunno and Michele Ruta, Working Paper No. 2024/180 (43 pages), DOI: https://doi.org/10.5089/9798400282478.001.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2024/08/15/trade-implications-of-china-s-subsidies-552506"
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    "Authors: Lorenzo Rotunno, Michele Ruta",
    "Published: August 23, 2024",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400282478.001",
    "Available data show a marked increase in subsidy utilization in China and in other major economies between 2009 and 2022.",
    "The paper investigates effects of China's subsidies on international trade flows at the product level over the period 2009–2022.",
    "Analysis includes product-level trade flows, supply-chain linkages, and decomposition into price and quantity effects.",
    "Subsidies promoted Chinese exports and limited imports.",
    "Supply-chain linkages magnify effects: subsidies given to upstream industries expand significantly the exports of downstream industries.",
    "Price and quantity decomposition at the product level:",
    "Subject: Export prices, Export subsidies, Exports, Imports, International trade, Prices",
    "Keywords: China, China's subsidy, Domestic subsidies, Export prices, Export subsidies, Exports, exports of downstream industry, Global, Imports, International trade, metal products, Overcapacity, Spillovers, supply-chain linkage, trade implication",
    "**Working Paper**"
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