A Bridge on Economic Issues between China and the World
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How Do Firms Withstand Global Economic Shocks: Evidence from Within-Firm Responses
Xiao Cen, Vyacheslav Fos, Wei Jiang, Oct 16, 2024The article discusses that the adaptation strategies of American firms against the backdrop of China's industrial policies are as follows: Firstly, they carry out strategic shifts within the American market, avoiding direct competition and turning to upstream and downstream areas of the supply chain; secondly, they redistribute production across national borders by directly establishing production bases in China to fully leverage China's policy advantages. These strategies demonstrate the strategic flexibility and strong adaptability of American firms in the face of global economic shocks.
A New Method for Estimating Product-Level Emission Intensities and Implications for EU’s Carbon Border Adjustment Mechanism
Ohyun Kwon, Hao Zhao, Min Qiang Zhao, May 14, 2025We develop a new method for estimating product-level emission intensities (PLEI) by combining firm-level emissions with firm-product output data. This methodological innovation produces highly granular emission measures that are essential for both academic research and climate policy design. Applying the method to Chinese manufacturing data, we uncover stark heterogeneity: the top 10% of emission-intensive products account for 75% of emissions but only 4% of exports. We incorporate our PLEI estimates into a general equilibrium trade model to assess the EU’s Carbon Border Adjustment Mechanism (CBAM). Our simulations demonstrate that, at the same carbon price, product-level CBAM achieves substantially greater emissions reductions than sector-level CBAM, while causing markedly less trade disruption. These results underscore the importance of product-level emission intensity data in designing targeted and cost-effective climate policies.
Place Prosperity vs People Prosperity: Migration and the Intergenerational Transmission of Knowledge
Carol H. Shiue, Wolfgang Keller, Apr 23, 2025The trajectory of an economy's development can often be better understood through the historical experiences of its populace. Long before the availability of comprehensive official data, Chinese family genealogies are a valuable resource for reconstructing economic evolution over time, as the following shows.
Visible Hands: Professional Asset Managers’ Expectations and the Stock Market in China
John Ammer, John Rogers, Gang Wang, Yang Yu, Jun 11, 2025Mutual funds have become an important type of private institutional investor in Chinese security markets, with assets under management exceeding $3 trillion. We study how Chinese fund managers’ growth expectations affect their equity investment decisions, and in turn, the effects on stock prices. We identify a strong short-run causal effect of growth expectations on stock returns. We also find that fund investment helps bring prices in line with firms’ longer-run earnings prospects.
How China’s Business Registration Reform Boosted Entrepreneurship and Productivity
Panle Jia Barwick, Luming Chen, Shanjun Li, Xiaobo Zhang, Nov 05, 2025China’s 2014 business registration reform spurred greater market dynamism by lowering entry barriers, which increased firm turnover and allowed smaller yet more productive entrepreneurs to establish new businesses, boosting overall productivity and growth.
