Research On the Impact of China's Industrial Chain Security Under US-China Trade Friction Based on DID Methodology

Abstract

This paper mainly studies the security of China's industrial chain under Sino-US trade friction. First, by considering the integrity, stability and competitiveness of the industrial chain, a comprehensive security level measurement system is established. Secondly, through the regression analysis based on the difference in differences model, it is found that the US restrictive policy on China has a negative impact on the security of China's industrial chain, but the measures taken by China to expand multilateral trade, increase exports and promote independent innovation have effectively mitigated the impact. Finally, the robustness test confirms the reliability of the conclusions, and the heterogeneity analysis of 21 industries shows that trade frictions mainly have a negative impact on capital - and technology-intensive industries, especially technology-intensive industries. Based on the conclusions of the model, this paper suggests that we should continue to improve China's industrial chain security monitoring and early warning system, while strengthening policy support for technology-intensive industries to cope with the challenges of international trade uncertainties.