The collateral damage of U.S. sanctions: Evidence from Chinese peer firms during the trade war

Key Points

• Economic impact is evident in Chinese peer firms affected by US sanctions during the trade war, showing significant collateral damage.
• Data analysis reveals that affected peer firms experienced a notable decrease in overall market performance throughout the trade period.
• Assessment of trade relations highlights the interconnectedness of economies, with sanctions leading to unforeseen consequences for collateral firms.
• The findings suggest that the implications of US sanctions extend beyond immediate targets, affecting the broader economic landscape.