Seminar (Dept. of General Management)

Title: HOW DO I OPEN A WINDOW WHEN YOU SHUT A DOOR? CHINESE FIRMS’ EXPORTS AND IMPORTS IN RESPONSE TO U.S. ECONOMIC SANCTIONS ON THIRD COUNTRIES

Speaker: Han Jiang (The Chinese University of Hong Kong，Shenzhen)

Time：10:00am, Dec 14th, (Thursday), 2023

Venue：Room 1008, Mingde Business Building

Language：Chinese/English

ABSTRACT:

It is widely known that economic sanctions have significant impacts on firms in both the sanctioning and the sanctioned countries. Of interest, however, is how firms from others countries respond to such prominent bilateral conflicts. In this study, we tackle this intriguing yet understudied question by exploring how Chinese firms respond to economic sanctions enforced by the United States on a third country by adjusting their imports from and exports to the sanctioned country. Synthesizing the insights of the resource dependence theory and the global supply chain literature, we propose that Chinese firms would increase their imports from a foreign country sanctioned by the U.S. to enhance their dependence advantages and influence on the global sourcing networks, and decrease their exports to the sanctioned country to avoid dependence on uncertain foreign markets. We further posit that such reactions would be contingent on the focal firms’ dependence on the U.S. market, as well as the bilateral coopetition between China and the U.S. Results from the difference-in-differences (DID) analyses based on Chinese firms’ trade records between 2006 and 2016 largely support our theoretical predictions.