Title: Internationalisation or regionalisation? The impact of US entity list sanctions on the global location strategy of Chinese multinational enterprises

Authors: Jianghua Zhou; Xindi Xu; Qinxue Bai

Addresses: Beijing Normal University, Beijing, China ' Beijing Normal University, Beijing, China ' Beijing Normal University, Beijing, China

Abstract: While the China-US trade war continues to escalate, the entity list sanctions, as an important part of the trade war, could have a significant impact on Chinese multinational enterprises (CMNEs). This study examines the impact of cooperators being listed on the entity list on the global positioning of CMNEs. Using micro firm-level data, this research encompasses 6,116 firm-year observations, representing 1,869 listed CMNEs. Building on the resource-based view and risk spillover theory, we hypothesise that, as risks emanate through collaborative relationships from sanctioned entities, CMNEs' outward foreign direct investment (OFDI) exhibits greater international location dispersion and increased average geographic distance. Furthermore, we discovered that overseas executive background and resource endowment significantly moderate these effects. This study contributes to the literature by highlighting the strategic adjustments CMNEs make in response to the entity list and concludes with practical recommendations for enterprises to mitigate the risks of technological decoupling and deglobalisation trends.

Keywords: China-US trade war; the entity list; regionalisation; internationalisation; Chinese multinational enterprises; CMNEs; top management team's overseas background; resource endowment.

DOI: 10.1504/IJTM.2025.151672

International Journal of Technology Management, 2025 Vol.98 No.2/3/4, pp.201 - 225

Received: 03 Apr 2024
Accepted: 30 Jan 2025
Published online: 13 Feb 2026 *

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