How the US-China Trade War Accelerated Urban Economic Growth and Environmental Progress in Northern Vietnam
The Trump Administration's tariffs created a wedge between mutually beneficial trades between China's producers and U.S. consumers. Moving production to nearby Vietnam allows firms to jump the tariff wall. Within Vietnam, cities closer to China with respect to distance and industrial mix grow faster and attract more FDI. They are increasingly consuming renewable power to fuel their local economy. We study the local air quality gains and the carbon dioxide emissions reductions associated with the growth in regional trade. China’s regional trade increases have important implications for the rise of the system of cities across Asia.
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