The impact of business support measures on the international activities of Chinese enterprises Evidence from the NEV Complete-Vehicle manufacturing industry

Abstract

This thesis investigates how business support measures affect the international activities of Chinese enterprises, using the new energy vehicle (NEV) complete-vehicle manufacturing industry as its primary case study. Moving beyond conventional export-centric analyses, this research reconceptualizes "international activities" as a multi-dimensional construct encompassing export intensity, overseas operational footprint, and localization depth.

Based on a balanced firm-year panel of 12 major Chinese NEV manufacturers from 2018 to 2024, the study employs two-way fixed effects and FE-IV/2SLS models to address endogeneity concerns. The empirical results reveal a stable, significantly positive association between the absorption of business support and firms' international activity. Mechanism tests further identify four transmission channels: scale expansion, innovation upgrading, liquidity buffering, and service-network capability enhancement.

A comparative case study of BYD and SAIC illustrates the heterogeneity of policy translation. While SAIC demonstrates stronger established overseas operational breadth, BYD exhibits superior strategic momentum for the next phase of NEV-centered globalization, attributed to its vertical integration, R&D intensity, and lower exposure to EU trade remedies.

The thesis concludes that business support measures create enabling conditions rather than automatically guaranteeing success; firm-level strategy and organizational capability ultimately determine the conversion of policy inputs into durable international competitiveness. Accordingly, policy recommendations advocate for a gradual shift from broad market stimulus toward targeted, transparent, and service-oriented instruments that facilitate the transition from export-led growth to resilient global operations.

Keywords: business support measures; international activities; new energy vehicles (NEVs); Chinese manufacturing; BYD; SAIC; firm heterogeneity; policy mix