Each year, the United States considers renewal of Most Favored nation (MFN) trading status with China. Historically, legislators have made threats of not renewing MFN status because of human rights abuses in China. The game below reflects the potential economic gains associated with a two-outcomes in which (a) China may impose trade sanctions against US firms and (b) the United States may not renew MFN status with China. The following table contains the dollar value of all trade-flow benefits to the United States and China under two trade-relationship scenarios.
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