The 2018 U.S.-China trade war has spurred wide-spread debates about the effects of Chinese imports on U.S. society. We examine the effect of United States' conferral of Permanent Normal Trade Relations (PNTR) on China — a policy that eliminates the uncertainty of future tariff increases for...

This paper studies how globalization affects corporate tax planning strategies of U.S. manufacturing firms. Using U.S. granting China Permanent Normal Trade Relations (PNTR) as a quasi-natural experiment, we find a significant increase in tax avoidance for firms facing higher exposure to Chinese...