Trade Policy Uncertainty and Chinese Firms’ Direct Investment in the U.S.
Dr. Tianyou Hu, Assistant Professor, University of Macau
Date: 30 October 2023 (Monday)
Time: 12:30pm to 2:00pm
Venue: E22 FBA Lobby
Abstract
Chinese firms face a trade policy uncertainty (TPU) in the United States, where the country consistently consider revoking its favorable tariff conditions for exports from China. We argue that Chinese firms would strategically use direct investment (FDI) to circumvent potential trade constraints. Data analysis indicates that during 2001-2021 Chinese listed firms are more likely to undertake FDI in the US when they perceive a higher level of TPU. This inclination is mitigated for firms with a greater number of subsidiaries closely located near the US political center (Washington D.C.), which enables them to gather policy-related information. Chinese firms with higher levels of state ownership experience a reduced effect because they have access to information about tacit changes in US-China relations.
Speaker
Tianyou is an Assistant Professor in the Department of Management and Marketing, Faculty of Business Administration, University of Macau. He earned a Ph.D. degree in the National University of Singapore, an MBA and two Bachelor’s degrees from the Peking University. Prior to joining UM, he worked in the National University of Ireland, Maynooth. Tianyou’s research spans the fields of Strategic Management and International Business, with special interests in interfirm alliances and networks, cooperation and competition, and institutions and FDI. Recently, he has been working on projects about the institutional environment for foreign direct investment from emerging markets. Tianyou has published papers in Journal of International Business Studies, British Journal of Management, Management and Organization Review, and European Journal of International Management.
All are welcome!
