Research on the Mechanism of China-US Trade Friction in Impacting Chinese Firms'Market Power
China is the world's largest exporter and major target country in international trade disputes.With the prevalence of anti-globalisation and trade protectionism,it is particularly important to study the impact of trade friction on Chinese enterprises and explore the way for their vigorous development from it.Therefore,this paper measures the impact of the intensity of US-China trade frictions on the market power of Chinese enterprises by using data on trade remedy cases published by the Trade Remedy Network(TRN)and data on the market power of Chinese enterprises from 2000 to 2022.It is found that:firstly,changes in the international trade environment brought about by U.S.-China trade frictions increase the risk of declining market power and mar-ket share.Secondly,U.S.-China trade frictions negatively impact firms'market power through the channels of curtailing foreign trade and investment,decreasing firms'ability to innovate,and weakening firms'resilience.Thirdly,based on the differences in ownership system,degree of competition in the industry,degree of financing constraints,and firms'factor endowment differ-ences,the impact of US-China trade friction on different firms'market power is characterised by heterogeneity.Fourthly,the re-sults remain robust after endogeneity and robustness tests using the instrumental variables approach,changing the measures of core variables,and deleting special samples.The article enriches the applied research on enterprise development under the un-certain economic environment,which is of great significance in improving the shock resistance of Chinese enterprises and resha-ping their competitive advantages and market power.
NETL
NSTL
万方数据
