SMU Professor of Strategy and Entrepreneurship Daphne Yiu and other academics co-authored a study to examine why some companies weather trade wars better than others. Analysing U.S.-China business transactions during the 2018 trade war, the study found that innovative and socially responsible Chinese suppliers retained more U.S. buyers, while those with strong political ties suffered greater losses. To boost resilience, companies should prioritise innovation, enhance corporate social responsibility efforts, and minimise political entanglements. Companies should diversify supply chains to mitigate geopolitical risks, while regulators can support these strategies to strengthen global trade stability.
