A Study On The Impact Of Sino-US Trade Friction On Innovation Of Strategic Emerging Enterprises In China

With the rapid development of the global economy and technology,innovation has become a crucial engine driving national development.As the world’s second-largest economy,China has achieved significant accomplishments in economic development and technological innovation,but still faces some serious challenges.In certain areas,China has room for improvement in terms of technological iteration and product innovation compared to some developed countries.At the same time,in certain domains,the United States appears to be attempting to restrict China’s development in economic globalization and cutting-edge high-tech innovation.The 2018 China-US trade friction,as a representative event,has put China in a bottleneck in some key areas,posing challenges.Strategic emerging industries are an important direction for China’s future development,and enhancing innovation activities of enterprises within these industries is the primary objective for addressing challenges and driving China’s competitiveness in the international market and promoting high-quality economic development.However,whether the initiation of trade friction has achieved the intended purpose of the United States and whether the China-US trade friction will have a negative impact on the innovation of Chinese enterprises in strategic emerging industries require further observation and research.This thesis is based on the background of the 2018 Sino-US trade friction and explores the impact of trade friction on the innovation activities of strategic emerging enterprises,as well as the mechanisms behind it.While the impact of trade friction on the global economy has attracted widespread attention,there has been limited research on its effects on corporate innovation,especially for strategic emerging enterprises.This thesis aims to deepen our understanding of the mechanisms behind the impact of trade friction on corporate innovation,and provide strategic and policy recommendations for enterprises and governments to cope with trade friction.The thesis employs a difference-in-differences model and takes the 2018 Sino-US trade friction as a natural experiment to examine the impact of trade friction on the innovation activities of listed companies in strategic emerging industries.The results show that(1)the impact of trade friction significantly promotes the R&D innovation investment of strategic emerging enterprises,and this result remains robust after conducting various sensitivity tests such as PSM-DID method,placebo test,introducing provincial time cross-term,and replacing the dependent variable.(2)In addition,the thesis explores the mechanisms behind the impact of trade friction on corporate innovation.The results indicate that Sino-US trade friction can promote corporate innovation by reducing financing constraints and increasing industry competitiveness.(3)The thesis also conducts a heterogeneity analysis of enterprises and finds that the impact of Sino-US trade friction on non-state-owned enterprises and large enterprises is more significant.The conclusions of this thesis provide a series of policy implications for coping with trade friction and promoting corporate innovation.Firstly,governments should strengthen support and investment in strategic emerging industries and enterprises,and enhance industry competitiveness.Secondly,governments should provide more policy and resource support to alleviate financing constraints for enterprises,and improve their innovation capabilities and competitiveness.Finally,governments should establish a sound international trade cooperation mechanism,reduce trade uncertainty,and mitigate the impact of trade friction on corporate innovation that may exist.