We assess the impact of U.S. trade policy uncertainty (TPU) toward China in a tractable general equilibrium framework with heterogeneous firms. We show that increased TPU reduces investment in export entry and technology upgrading, which in turn reduces trade flows and real income for consumers....

Access to the fast-growing Chinese economy is prized by policymakers and business people. Concerns that European firms are missing out on the Chinese boom have caused soul-searching in Europe about "competitiveness" and led to accusations of Chinese protectionism. For the first 15 members to...