Dr Fan Di, Associate Professor, has published a significant study titled "Locking in Overseas Buyers Amid Geopolitical Conflicts" in the Journal of Operations Management. This collaborative research, conducted with scholars from Renmin University, the Australian National University, and Singapore Management University, explores the impact of the ongoing U.S.–China trade war on cross-border trade relationships. The study reveals that transactions between U.S. buyers and Chinese suppliers dropped by 18.42% following the 2018 trade war. It also highlights strategies for mitigating these impacts, emphasising the importance of innovation and corporate social responsibility (CSR) in building resilient international relationships.
The study provides essential insights for businesses that are navigating today’s deglobalised world. Dr Fan and his team suggest that Chinese suppliers with strong innovation capabilities and high CSR performance are better equipped to retain overseas buyers. Furthermore, while political connections can be beneficial during stable times, they may become liabilities amid geopolitical tensions, thus posing risks to international partnerships. Buyers, on the other hand, should carefully assess their dependence on specific suppliers and strive to balance supplier capabilities with supply chain flexibility to enhance resilience against geopolitical risks.
The importance of Dr Fan's research work has caught the attention of major media outlets, including the South China Morning Post and Asia Times. An article in the South China Morning Post, "Is Vietnam losing its appeal for China’s manufacturers bypassing US tariffs?," examines how Chinese firms adapt their strategies amidst changing geopolitical dynamics. Similarly, the Asia Times discusses the ongoing challenges faced by Chinese EV manufacturers in "China EVs still driving for EU’s protected markets." These features underscore the relevance and impact of Dr Fan’s work, which offers a comprehensive analysis of the strategies that businesses can use to navigate the complexities of geopolitical conflicts.
The Journal of Operations Management is a flagship peer-reviewed academic journal in the area of operations and supply chain management. It is listed in the Financial Times 50 and UT-Dallas journal lists, and ranked 4* on the UK’s ABS journal list and A* on Australia’s ABDC list. The full article is available here.
