Dr. Zhan Xinrui, a young teacher from the School of Finance and Public Administration at our university, who served as the corresponding author and collaborated with Professor Brian W. Jacobs from Pepperdine University and Professor Vinod R. Singhal from Georgia Institute of Technology, jointly published a research paper titled Stock Market Reaction to Global Supply Chain Disruptions from the 2018 US Government Ban on ZTE in the Journal of Operations Management , vol 68, No.8 , December, 2022. The Journal is the top tier in the field of operations management and this is the first time that the research results of our university’s teachers have been published in the UTD24 journal.

The paper argues that government intervention in trade is increasingly constituting an important source of supply chain risk. Although extensive research has explored the consequences of global trade frictions on macro finance, research of the impact on enterprises due to geopolitical disruptions on supply chains is still limited. Based on the government intervention of the United States issuing a ban on domestic companies supplying to ZTE Corporation against the background of 2018 China-US trade war, the paper selects ZTE’s global listed supply chain partners as research samples, and uses event research methods to quantitatively analyze the losses suffered by ZTE’s upstream and downstream global supply chain partners due to the forced interruption.

The paper finds that the issuance of this ban has had a significant negative impact on upstream supplier partners in the United States, resulting in the evaporation of the market value of their first and second tier suppliers by a large margin. Non US domestic suppliers, downstream customers, and ZTE’s competitors, however, were not obviously affected by the ban. Unlike previous studies that often focus on the macro financial consequences of global trade frictions, this study is the first to explore the consequences of supply chain disruptions caused by geopolitical risks at the enterprise and supply chain levels, making significant theoretical contributions to the research on supply chain disruptions and supply chain risk management.