This paper examines the attitudes of multinational corporations (MNCs) toward the U.S.-China trad... more This paper examines the attitudes of multinational corporations (MNCs) toward the U.S.-China trade war through an original survey of China-based MNC subsidiaries in the manufacturing industry. Our argument is in two parts. First, firms that have relocated production outside of China or are considering such moves should be less likely to oppose the trade war as they possess outside options that reduce their vulnerability to trade restrictions. Second, firms’ tendency toward production relocation can in turn be explained by their local sourcing dependence, as measured by the level of such dependence and the degree to which their operations require supplier certification. This is because firms more heavily embedded in local supplier networks face stronger resource dependence that increases organizational inertia, reducing their ability to switch to alternative suppliers and therefore relocating production to other destinations. Our findings corroborate our hypotheses, highlighting how ...
This paper examines the influence of three different forms of global economic engagement on the l... more This paper examines the influence of three different forms of global economic engagement on the lobbying behavior of US businesses with regard to trade relations with China: (a) input sourcing; (b) downstream export; and (c) vertical foreign direct investment. It will be hypothesized that firms involved in all three forms of global economic activities should have incentives to lobby over China-related trade issues in order to maintain unimpeded access to sources of supply or markets and to ensure the smooth operation of the entire supply chain. Going further, drawing on the exit-voice framework developed by Albert Hirschman (1972), it will be argued that compared to firms in those industries mainly involved in input sourcing from China, American multinational corporations that have verticalized their production should have even stronger incentives to engage in lobbying activities and “voice” their policy preferences due to their greater “sunk costs” and hence the higher cost of “exi...
This paper examines the effect of bilateral investment treaties (BITs) in promoting Chinese outwa... more This paper examines the effect of bilateral investment treaties (BITs) in promoting Chinese outward foreign direct investment (COFDI) in the presence of rising economic policy uncertainty in China's partner countries. We postulate that the signing of BITs should help stimulate COFDI because the treaties send a credible signal to foreign investors about the host country's intent to protect Chinese investment, and make it more difficult for the host country to violate its treaty obligations. BITs that contain rigorous investment protection and liberalization provisions, in particular, should be more likely to encourage COFDI as they directly influence Chinese investors' expectations about the stability, predictability, and security of the host market. However, while BITs generally promote COFDI, host country economic policy uncertainty may also limit their effectiveness. This is because uncertainty tends to undermine investor confidence, trigger capital flows from high- to...
The Chinese Journal of International Politics, 2019
The rapid increase in recent years of Chinese outbound foreign direct investment (FDI) has prompt... more The rapid increase in recent years of Chinese outbound foreign direct investment (FDI) has prompted growing scholarly interest in its economic and political implications for host countries. However, relatively little attention has been paid to how concerns over the rise of China may shape public attitudes towards such investment. This article tests the link between threat perception and preferences for FDI in the United States. We argue that, due to heightened geopolitical concerns and nationalism, perceptions of the China threat negatively affect how the American public views the impact of incoming Chinese FDI. Using a survey experiment, we show that respondents are indeed less likely to support Chinese FDI when primed with information that highlights the security and economic threats posed by China than when they receive no such priming. Furthermore, causal mediation analyses reveal that the treatment effects of security and economic threats are mediated by respondents’ concerns a...
Objectives. This article explores gender differences in attitudes about the seriousness of the en... more Objectives. This article explores gender differences in attitudes about the seriousness of the environment as a problem in China using the "2008 China Survey." Methods. We use generalized ordered logit models to analyze survey respondents' environmental attitudes. Results. Our results indicate that there is indeed a "gender gap" in environmental attitudes in China, but the pattern is reversed from what has been generally found in previous work conducted in the United States and Europe. Chinese men, not women, show a greater concern about environmental problems and the seriousness of the environmental degradation in China. Further, we find that this gender gap is based largely in the substantial economic and educational differences between men and women in contemporary China. Conclusions. This study emphasizes the mediating influence of socioeconomic variables in explaining gender attitudes toward the environment in China. Our findings suggest that in different contexts, women may be faced with difficult decisions between immediate economic necessities and long-term environmental concerns. The observed environmental gender gap in China will likely persist unless further economic development results in improved access to education and economic conditions for Chinese women.
If the documents have been made available under an Open Content Licence (especially Creative Comm... more If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence.
This article constructs a measure of geopolitical and economic tensions in US–China relations bas... more This article constructs a measure of geopolitical and economic tensions in US–China relations based on the sentiment expressed in major US news media and utilizes it to analyze the impact of bilateral tensions on US imports from China between 2002 and 2019. Our results suggest that bilateral tensions have had a negative effect on US imports. Additional analyses of the impact of bilateral tensions for industries with varying levels of supply chain linkages to China suggest that, contrary to expectations, they have more disproportionately affected industries highly integrated with the Chinese market. This pattern continues to hold during the trade war period. Not only were bilateral tensions associated with higher tariffs for industries with high levels of global value chain linkages to China, but the tariff hikes have also had a more sustained impact on such industries. Overall, our findings indicate that potential “sunk costs” considerations may not have been strong enough to forest...
Foreign direct investment (FDI) into developing countries such as India and China is often met wi... more Foreign direct investment (FDI) into developing countries such as India and China is often met with domestic backlash by the citizens of the host country, and backlash in the form of protests and other disruptive behavior has increased the salience of public opinion in FDI policy. As one of the first survey experiments assessing Chinese citizens’ attitudes toward FDI, this paper adopts a novel conjoint design to evaluate the impact, in the present project, of individual respondent characteristics and specific FDI features on respondents’ preferences. Importantly, we find that low-skilled respondents are not necessarily more likely to support labor-intensive FDI, a result that challenges the conventional wisdom that individuals in developing countries abundantly endowed with labor should be more likely to support low-skilled FDI. Instead, citizens are more concerned about FDI projects’ country of origin and impact on the local job market when forming their preferences.
This paper examines the attitudes of multinational corporations (MNCs) toward the U.S.-China trad... more This paper examines the attitudes of multinational corporations (MNCs) toward the U.S.-China trade war through an original survey of China-based MNC subsidiaries in the manufacturing industry. Our argument is in two parts. First, firms that have relocated production outside of China or are considering such moves should be less likely to oppose the trade war as they possess outside options that reduce their vulnerability to trade restrictions. Second, firms’ tendency toward production relocation can in turn be explained by their local sourcing dependence, as measured by the level of such dependence and the degree to which their operations require supplier certification. This is because firms more heavily embedded in local supplier networks face stronger resource dependence that increases organizational inertia, reducing their ability to switch to alternative suppliers and therefore relocating production to other destinations. Our findings corroborate our hypotheses, highlighting how ...
This paper examines the influence of three different forms of global economic engagement on the l... more This paper examines the influence of three different forms of global economic engagement on the lobbying behavior of US businesses with regard to trade relations with China: (a) input sourcing; (b) downstream export; and (c) vertical foreign direct investment. It will be hypothesized that firms involved in all three forms of global economic activities should have incentives to lobby over China-related trade issues in order to maintain unimpeded access to sources of supply or markets and to ensure the smooth operation of the entire supply chain. Going further, drawing on the exit-voice framework developed by Albert Hirschman (1972), it will be argued that compared to firms in those industries mainly involved in input sourcing from China, American multinational corporations that have verticalized their production should have even stronger incentives to engage in lobbying activities and “voice” their policy preferences due to their greater “sunk costs” and hence the higher cost of “exi...
This paper examines the effect of bilateral investment treaties (BITs) in promoting Chinese outwa... more This paper examines the effect of bilateral investment treaties (BITs) in promoting Chinese outward foreign direct investment (COFDI) in the presence of rising economic policy uncertainty in China's partner countries. We postulate that the signing of BITs should help stimulate COFDI because the treaties send a credible signal to foreign investors about the host country's intent to protect Chinese investment, and make it more difficult for the host country to violate its treaty obligations. BITs that contain rigorous investment protection and liberalization provisions, in particular, should be more likely to encourage COFDI as they directly influence Chinese investors' expectations about the stability, predictability, and security of the host market. However, while BITs generally promote COFDI, host country economic policy uncertainty may also limit their effectiveness. This is because uncertainty tends to undermine investor confidence, trigger capital flows from high- to...
The Chinese Journal of International Politics, 2019
The rapid increase in recent years of Chinese outbound foreign direct investment (FDI) has prompt... more The rapid increase in recent years of Chinese outbound foreign direct investment (FDI) has prompted growing scholarly interest in its economic and political implications for host countries. However, relatively little attention has been paid to how concerns over the rise of China may shape public attitudes towards such investment. This article tests the link between threat perception and preferences for FDI in the United States. We argue that, due to heightened geopolitical concerns and nationalism, perceptions of the China threat negatively affect how the American public views the impact of incoming Chinese FDI. Using a survey experiment, we show that respondents are indeed less likely to support Chinese FDI when primed with information that highlights the security and economic threats posed by China than when they receive no such priming. Furthermore, causal mediation analyses reveal that the treatment effects of security and economic threats are mediated by respondents’ concerns a...
Objectives. This article explores gender differences in attitudes about the seriousness of the en... more Objectives. This article explores gender differences in attitudes about the seriousness of the environment as a problem in China using the "2008 China Survey." Methods. We use generalized ordered logit models to analyze survey respondents' environmental attitudes. Results. Our results indicate that there is indeed a "gender gap" in environmental attitudes in China, but the pattern is reversed from what has been generally found in previous work conducted in the United States and Europe. Chinese men, not women, show a greater concern about environmental problems and the seriousness of the environmental degradation in China. Further, we find that this gender gap is based largely in the substantial economic and educational differences between men and women in contemporary China. Conclusions. This study emphasizes the mediating influence of socioeconomic variables in explaining gender attitudes toward the environment in China. Our findings suggest that in different contexts, women may be faced with difficult decisions between immediate economic necessities and long-term environmental concerns. The observed environmental gender gap in China will likely persist unless further economic development results in improved access to education and economic conditions for Chinese women.
If the documents have been made available under an Open Content Licence (especially Creative Comm... more If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence.
This article constructs a measure of geopolitical and economic tensions in US–China relations bas... more This article constructs a measure of geopolitical and economic tensions in US–China relations based on the sentiment expressed in major US news media and utilizes it to analyze the impact of bilateral tensions on US imports from China between 2002 and 2019. Our results suggest that bilateral tensions have had a negative effect on US imports. Additional analyses of the impact of bilateral tensions for industries with varying levels of supply chain linkages to China suggest that, contrary to expectations, they have more disproportionately affected industries highly integrated with the Chinese market. This pattern continues to hold during the trade war period. Not only were bilateral tensions associated with higher tariffs for industries with high levels of global value chain linkages to China, but the tariff hikes have also had a more sustained impact on such industries. Overall, our findings indicate that potential “sunk costs” considerations may not have been strong enough to forest...
Foreign direct investment (FDI) into developing countries such as India and China is often met wi... more Foreign direct investment (FDI) into developing countries such as India and China is often met with domestic backlash by the citizens of the host country, and backlash in the form of protests and other disruptive behavior has increased the salience of public opinion in FDI policy. As one of the first survey experiments assessing Chinese citizens’ attitudes toward FDI, this paper adopts a novel conjoint design to evaluate the impact, in the present project, of individual respondent characteristics and specific FDI features on respondents’ preferences. Importantly, we find that low-skilled respondents are not necessarily more likely to support labor-intensive FDI, a result that challenges the conventional wisdom that individuals in developing countries abundantly endowed with labor should be more likely to support low-skilled FDI. Instead, citizens are more concerned about FDI projects’ country of origin and impact on the local job market when forming their preferences.
China's Belt and Road Initiative (BRI) is often regarded as a push to expand the country's influe... more China's Belt and Road Initiative (BRI) is often regarded as a push to expand the country's influence overseas. Introduced amidst domestic economic slowdown in late 2013, however, the BRI is also a domestic investment drive, in which domestic firms are encouraged to go abroad in search of new markets and investment opportunities. While domestic firms are likely to play a leading role in the BRI, there has been surprisingly little systematic analysis of domestic businesses' perception of the BRI. We undertake such a task in this study using a unique survey that explores Chinese firms' decision to participate in the BRI as a function of firm-level and host country characteristics as well as the firms' perceived benefits and challenges from BRI participation. The results confirm some conventional wisdoms but also reveal a number of surprising findings. Given the relative dearth of research about Chinese firms' perceptions of the BRI, this study contributes to a better understanding of the challenges faced by Chinese firms that need to be addressed in order for Beijing to more effectively carry out the initiative.
The rapid increase in Chinese outbound foreign direct investment (FDI) in recent years has prompt... more The rapid increase in Chinese outbound foreign direct investment (FDI) in recent years has prompted growing scholarly interest in its economic and political implications for host countries. However, relatively little attention has been directed to how concerns over the rise of China may be shaping public attitudes toward such investment. This paper tests the link between threat perception and preferences for FDI in the United States. We argue that perceptions of the China threat negatively affect how the American public views the impact of incoming Chinese FDI, due to heightened geopolitical concerns and nationalism. Using a survey experiment, we show that respondents are indeed less likely to support Chinese FDI when primed with information that highlights the security and economic threats posed by China than when they receive no such priming. Furthermore, causal mediation analyses reveal that the treatment effects of security and economic threats are mediated by respondents' concerns about the challenges that Chinese FDI poses to national security and American jobs.
Uploads
Papers by Ka Zeng