The dynamics of price discovery between the U.S.and Chinese soybean market:a wavelet approach to understanding the effects of Sino-US trade conflict and COVID-19 pandemic

During geopolitical crises,the price stability of agricultural commodities is critical for national security.Understanding the dynamics of pricing power between the U.S.and China and how it varies over time can help smaller nations navigate unpredictable moments.This study uses a unified framework and wavelet approach to examine soybean price discovery in the U.S.and China from the standpoints of price interdependence and information flows.We begin by illustrating the integrated link between the soybean futures markets in the U.S.and China,which includes multiple structural breaks.The pricing difference between the two nations acts as the primary information spillover route for their integrated relationship.Furthermore,we show that the direction and degree of information spillover change dramatically in proportion to the strength of the U.S.–Chinese soybean interaction.Finally,we find that China’s recent retaliatory tax on the U.S.soybeans gave the Chinese market a more powerful position in soybean futures price discovery.After the first-stage trade deal was reached,and during the epidemic phase of the coronavirus pandemic,the pricing power of the U.S.soybean market showed no signs of full recovery.

Cultural study on trade disputes between China and the West

In recent years, China＇s international trade has made great actuevements, However, when carefully reviewing its performance in the international market, we have to admit a fact that ＂Chinese businessmen＂ and ＂Made in China＂ are encountering great challenges, even aversion in many foreign markets. The so-called ＂Yellow peril theory＂ and ＂China threat theory＂ have caught on once again. Faced with such frequent trade conflicts, we fall into contemplation. Why did trade conflicts so frequently happen？ Do these conflicts merely remain at the commercial level？ Or, are there any deep-seated conflicts leading to trade conflicts？ What are the root causes of these conflicts？ How to overcome and avoid these conflicts in the future？ With these questions, this paper is designed to inquire into the root cause of trade conflicts and the constructive suggestions to settle trade conflicts from a cultural perspective.

Reforming the World Trade Organization: Practitioner Perspectives from China, the EU, and the US

China,the European Union,and the United States are the world s largest traders.They have a big stake in a multilateral system of rules to manage the inevitable frictions among interdependent economies organized on different principles.This paper discusses elements of the WTO reform agenda through the lens of positions taken by these three WTO members,identifying the extent of alignment on key subjects,including transparency,dispute settlement,and plurilateral negotiations.We draw on findings of a recent research project on WTO reform and use responses to an expert survey to assess the prospects for actions that all three trade powers might support.Our premise is that reforming WTO is a necessary condition for the organization to be a more salient forum for the three large economies to address trade tensions,and that agreement among these three trade powers^in turn,is necessary to resolve the problems of the WTO.

Valuation Effects of US-China Trade Conflict:The Role of Institutional Investors

Employing an event study approach to the US-China trade conflict,we found that this conflict had an overall negative effect on the stock market performance of Chinese listed firms,but firms with institutional investor holdings(IIH)exhibited smaller losses than their counterparts in response to a US presidential memo announcing a trade conflict.We also examined the heterogeneous effects of this conflict on firms.The positive effect of IIH was larger for firms with foreign exposure and firms located in provinces with a higher degree of marketization.Institutional investor holdings helped to reduce firms'cost of refinancing and improved their long-run performance given the same shortterm loss in response to the US presidential announcement during the trade conflict.These findings explain the role of institutional investors in alleviating the effects of the US-China trade conflict and achieving financial stability from a micro-perspective.The results have policy implications for corporate governance and financial market stabilization in response to trade policy uncertainty.

Economics-based Principles for a Post-conflict China-US Commercial Regime

Neither the Chinese nor US economic systems will fundamentally change as a result of overt trade conflict. The challenge for policy-relevant economics is to design a regime for China-US commerce that accepts the co-existence but also addresses underlying disputes. Many important China-US disputes, notably those over intellectual property protection and state subsidies, cannot be resolved by the World Trade Organization, thus new institutions must be built. Economics-based regime principles should entail recognition that： the China-US bilateral trade imbalance is unique mainly because of macroeconomic and financial factors, not trade; agreements should restrict commercial and government behaviors, not target economic outcomes; Chinese companies must compete and be allowed to succeed in any sector, including high-technology; China is not entitled to US-owned technology, thus intellectual property rights must be enforced; and the US Government should support an increased role for China in global economic governance.