Exports in Disguise: Trade Rerouting during the US-China trade war

Ebehi Iyoha, an assistant professor of Business Administration at Harvard Business School, delivered a paper presentation on "Exports in Disguise: Trade Rerouting during the U.S.-China Trade War'' on July 30, 2024. The purpose of this paper is to ascertain the degree to which third-world countries are impacted by Chinese products that are rerouted to the United States via Vietnam, as well as to measure the process of rerouting. According to her research, China benefits from rerouting due to its reduced production costs. However, economies that rely on importation revenues are the primary losers. Vietnam is reaping substantial benefits as a result of value-added production and manufacturing, as the proportion of value activity decreases as rerouting increases. However, for US consumers, rerouting results in relatively cheaper products, while for US policymakers, it undermines the objectives of trade policies.