How do Sanctions Shape Global Supply Chains?
Prof. Jing WU
Professor
Department of Decisions, Operations, and Technology
The Chinese University of Hong Kong (CUHK) Business School
Date: 24 September 2025 (Wednesday)
Time: 14:30-16:00
Venue: E22-G010
Host: Prof. Luping YU, Associate Professor in Finance
Abstract
This study examines how firms adapt their supply chain configurations in response to US sanctions on suppliers. Using comprehensive global supply chain data and a difference-in-differences model, we find that firms not only sever ties with sanctioned suppliers but also reduce connections with non-sanctioned suppliers in sanctioned countries. To enhance resilience, firms broaden their supplier bases and increase geographic diversification, often relocating suppliers to countries with regional trade agreements to mitigate trade disruptions. Our analysis reveals significant heterogeneity by firm origin: companies in sanctioned regions frequently reshore, incurring reduced profitability and sales, while those in non-sanctioned regions pursue offshoring and diversification with minimal financial impact. Notably, US-based firms exhibit fewer adjustments and are largely unaffected operationally and financially. By integrating political risk and economic efficiency, this study provides a framework for understanding strategic supply chain reconfiguration under geopolitical constraints, offering insights for global supply chain management.
Speaker
Prof. Jing Wu is a Professor in the Department of Decisions, Operations, and Technology at the Chinese University of Hong Kong (CUHK) Business School. He is the Director of the Master of Science Programme in Business Analytics, the Director of Centre of Cyber Logistics, and the Associate Director of the Asian Institute of Supply Chains & Logistics. His academic credentials include a PhD in operations management (with a minor in economics and finance) and an MBA from the University of Chicago Booth School of Business, as well as a bachelor’s degree in Electronic Engineering from Tsinghua University. Prof. Wu’s research focuses on global supply chain management, the operations-finance interface, sustainable operations, and business intelligence. He employs empirical methodologies, including applied econometrics, machine learning, and unstructured data techniques, to conduct his research. His papers have been published in leading academic journals such as Management Science, Manufacturing & Service Operations Management, and Information Systems Research. In addition to his research, Prof. Wu has contributed actively to academic leadership. He serves as an Associate Editor for Manufacturing & Service Operations Management and a Senior Editor for Production and Operations Management.
All are welcome!
