Wei Yanning | Welfare Effects of China's Domestic Integration under the Background of Trade Friction

12moon5On that day, the event was hosted by the Tsinghua University PBC School of Finance and co-organized by the Tsinghua University PBC School of Finance International Finance and Economics Research Center.CIFERThe "organized by"2025International Trade Disputes and the Restructuring of Globalization: A Symposium on New International Economics"Successfully held in Beijing."

Wei Yaning, Lecturer at Zhongnan University of Economics and LawAttended the second sub-forum chaired by Du Yingxin, Associate Research Fellow at the China Institute for World Trade Organization Studies, University of International Business and Economics."International trade dispute"Share its title is "Welfare effects of China's domestic integration under the background of trade friction》（Welfare Effects of China's Domestic Integration Against the Background of Trade Frictions(Article).

Wei YaningLecturer at Zhongnan University of Economics and Law, PhD from Shanghai University of Finance and Economics, specializing in international trade theory and policy. She has published several articles in journals such as *Economics Quarterly*, *World Economy*, and *Quantitative Economics and Technological Economics Research*. She has led a Ministry of Education Humanities and Social Sciences Youth Project and a China Postdoctoral Science Foundation Project, and participated in the application and completion of several major national social science projects and national natural science projects.

Wei Yaning

Wei YaningDuring the sharing, it was pointed out that,Against the backdrop of escalating trade frictions, reducing domestic trade costs and improving transportation infrastructure can help mitigate external shocks. Based on a multi-regional, multi-sectoral general equilibrium model, this article finds that, although...2012-2017While inter-provincial trade costs in China generally trended upward over the years, investment in transportation infrastructure significantly mitigated this rise. Research indicates that both reducing inter-provincial trade costs and improving transportation infrastructure can significantly enhance social welfare, with the latter having a more pronounced positive effect. Crucially, the impact of US tariffs and specific sanctions targeting green and high-tech industries resulted in direct regional welfare losses. Domestic market integration and transportation infrastructure optimization played a vital "internal buffer" role, effectively offsetting the negative impacts of external shocks by facilitating smooth domestic economic circulation.

Ning Jingxin

Ning Jingxin, lecturer at the University of International Business and EconomicsComment on the article.She stated that the article's counterfactual simulations across three levels are solid, systematically and quantitatively assessing the welfare effects under different policy scenarios. Furthermore, the article's in-depth analysis of the key mechanism of intermediate goods trade provides a valuable micro-perspective for understanding economic resilience under the impact of trade frictions. She suggested relaxing the assumption of labor immobility in the model; addressing endogeneity issues when estimating the impact of transportation infrastructure on trade costs in the empirical study; and clearly defining the conceptual boundaries of market accessibility, trade costs, and transportation costs. In addition, she recommended expanding the data window when analyzing trade frictions.2025In 2020, we will enhance the visualization of changes in trade flows and trade costs to improve the rigor and intuitiveness of our articles.