The impact of geopolitical risks on Chinese enterprises' OFDI performance

This study uses cross-national panel data from 2001 to 2023 to explore the relationship between political risk, cultural distance, and the performance of Chinese enterprises' outward foreign direct investment (OFDI). The findings indicate that: first, political risk has a significant negative impact on the OFDI performance of Chinese enterprises; second, cultural distance moderates the relationship between political risk and the OFDI performance of Chinese enterprises, with a greater cultural distance exacerbating the suppressive effect of political risk on OFDI; third, the impact of political risk on OFDI performance varies between high-tariff and low-tariff countries, with a more significant negative effect in high-tariff countries; finally, the impact of political risk on OFDI performance differs between countries with high and low trade openness, with a stronger negative effect in countries with lower trade openness. These results provide critical theoretical support for the investment strategies of Chinese enterprises in the global market.