Study On Impact Of Sino-foreign Trade Friction On Chinese Enterprise Performance From The Perspective Of Global Value Chains

With the rapid expansion of China's foreign trade scale,China's economic growth has caused panic in the United States and other developed countries,which has also caused frequent trade frictions between China and its trade partners.China has become the country that suffers the most from global trade friction.With the increase in the frequency of trade protection against China by various countries,the product areas affected by trade frictions in China are also expanding.It is generally believed that China-foreign trade friction should be targeted at Chinese industries with comparative advantages,but it also involves Chinese industries without comparative advantages.Trade protection has become one of the important means to curb the development of China's strategic industries.This paper attempts to analyze the present situation and causes of sino-foreign trade frictions based on the main forms of modern trade frictions,and to test the impact of sino-foreign trade friction on Chinese enterprise performance.In addition,this paper also explores the transmission channels by which trade friction influences enterprises from the perspective of global value chains,which provides useful enlightenment for China to deal with trade friction.The main contents of this paper are as follows:First of all,on the basis of elaborating the basic theory of trade friction,the paper analyzes the current situation of trade friction between China and its trade partners,including the situation that China has suffered from anti-dumping,countervailing and safeguard measures respectively.This article also focuses on the analysis of the current situation of trade friction between China and some major countries,including Sino-US trade friction,Sino-India trade friction,Sino-EU trade friction and Sino-Japan trade friction.Then,this paper discusses the reasons why China encounters trade friction combined with the current situation of Sino-foreign trade frictions.Secondly,this paper analyze the impact of Sino-foreign trade friction on Chinese enterprise performance taking four indicators as the proxy variable of enterprise performance,including productivity,export share,innovation and product quality.This study applies the ordinary least square method and the instrumental variable method to examine the impact of Sino-foreign trade friction on the performance of China enterprises,taking foreign anti-dumping against China as an example and using the data from the global anti-dumping database,China industrial enterprise database and China customs database from 2000 to 2007.Based on the robustness test and endogenous test,this paper examines the differential impact of trade friction on the performance of different types of enterprises,and explores how trade friction affect enterprise performance from the perspective of global value chains.Finally,this paper uses the listed company stock price as the proxy variable of enterprise performance to examine the impact of Sino-foreign trade friction on Chinese listed company performance.This study constructs a “quasi-natural experiment” using the impact of Sino-US Tire Special Safeguard Case in 2009 as the exogenous shock,and examines the impact of sino-foreign trade friction on the performance of Chinese listed companies,using the data from China Industrial Enterprise Database,China Customs Database and China Stock Market & Accounting Research Database.Then,this study examines the impact of trade friction on the performance of related listed companies from the perspective of global value chains.To sum up,this paper examines the impact of Sino-foreign trade friction on enterprise performance from the perspective of global value chains,and conducts empirical tests on enterprise productivity,export share,innovation,product quality and stock price as proxy indicators of enterprise performance.The research findings of this paper are as follows: First,Sino-foreign trade friction has a significant negative impact on the productivity and innovation of Chinese industrial enterprises,and the impact of Sino-foreign trade friction on different types of Chinese industrial enterprises is different.The study finds that global value chain linkages is a transmission channel by which trade friction influences productivity and innovation of the enterprises from the perspective of global value chains.Secondly,Sino-foreign trade friction has a significant negative impact on the export share and product quality of Chinese export companies,and there are differences in the impact of Sino-foreign trade friction on different types of Chinese export companies.The study finds that global value chain linkages is a transmission channel by which trade friction influences export share and product quality of export enterprises from the perspective of global value chains.Finally,Sinoforeign trade friction has a significant negative impact on the stock price of Chinese listed companies,and the impact of Sino-foreign trade friction on the stock price of Chinese listed companies has a time effect and a stage effect.A study also finds that Sino-foreign trade friction has a negative impact on the stock prices of listed companies in related industries from the perspective of global value chains.Based on the conclusions of this paper,the Chinese government should issue corresponding trade friction response mechanisms and policies to support export enterprises,and export enterprises themselves should also actively improve the ability to deal with trade.The impact of Sino-foreign trade frictions on Chinese industrial enterprises is becoming more and more obvious for industrial enterprises.For industrial enterprises,the impact of Sino-foreign trade frictions on Chinese industrial enterprises is becoming more and more obvious.Enterprises should enhance the enterprise innovation while enhancing the embedding of the global value chain.The government should also make full use of financial and fiscal measures to ease the financing Constraints of industrial enterprises,thereby improving the ability of enterprises to deal with trade frictions.For listed companies,each listed company should not only be aware of the impact of related external shocks on the stock price in the face of trade friction,but also be aware of the impact of negative shocks from its upstream industry on its stock price.For listed companies,each companies should not only beware of the impact of external shocks on stock prices,but also be aware of the impact of negative shocks from their upstream industries on their stock prices,so listed companies should take corresponding precautions and countermeasures in the face of trade friction.The innovation of this paper includes three aspects.First of all,from a research perspective,this paper studies the disruption effect of trade friction from the perspective of the global value chains.That is,this paper examines the “cascading effect” of trade friction on corporate performance and its impact from the perspective of global value,so this study expands the existing research perspectives on the impact of trade friction research.Secondly,in terms of research content,this paper examines the impact of trade friction on corporate performance more comprehensively from the perspective of micro-enterprise,including study on the impact of trade friction on enterprise productivity,export share,innovation,product quality and stock price.Therefore,this study comprehensively estimates the impact of trade friction on enterprise performance,and also expands the knowledge boundary of existing research to a certain extent.Finally,,in terms of the research object,this paper selects three types of companies with different characteristics,such as manufacturing companies,export companies and listed companies,to study the impact of trade friction on corporate performance based on the characteristics of corporate behavior,which improves the scientificity and accuracy of the research.