The Impact of Sino-US Trade Friction on Corporate Financial Risks—Empirical Evidence of Quasi-Natural Experiments of Listed Companies in China

Under the impact of trade frictions, Chinese listed companies face multiple challenges, such as rising tariff costs, hindered technical cooperation, and supply chain disruptions, and it is of great practical significance to accurately assess the changes in their financial risks to ensure enterprise security and market stability. This paper uses China's A-share listed companies from 2015 to 2024 as a research sample and empirically tests the impact of the exogenous event of Sino-US trade friction on the financial risk of listed companies, employing the double difference method (DID). The study finds that the Sino-US trade friction significantly reduces the financial risk of listed companies affected by the friction. Heterogeneity analysis further reveals that this effect is more significant in enterprises with strong profitability and a smaller scale. This study provides new empirical evidence for a deeper understanding of the economic consequences of Sino-US trade friction.