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The general methodology in this paper has been to estimate the Revealed Comparative Advantage (RCA) in the case of U.S. and China. Also, with the help of a set of semi-log growth equations, the trends in exports and RCA are studied. China’s export performance is much better than that of US. In terms of RCA, the US has not shown any significant growth in RCA of industrial and high technology exports, while US has gained in intermediate exports. China has seen increased growth rate in RCA of high technology exports, where US has lost the advantage. The dynamics of trade patterns between countries is amply justified through their respective long term growth in comparative advantage. Since the two countries’ trade patterns have been evolving according to their respective RCA, there seems to be little justification for either country to escalate the trade war by imposing trade restrictions.

Keywords

Revealed comparative advantage; US-China trade; Long term patterns; Export patterns.

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