| Abstract: |
This study examines how US export controls targeting Chinese firms affect the
export behavior of Japanese firms using Japan Customs data. Focusing on the
impact of the US Bureau of Industry and Security’s Entity List (EL), we
identify exports from Japanese firms to Chinese firm added to the EL by the
end of 2022. We find that inclusion of Chinese firms in the EL led to a
significant reduction in Japanese firms’ exports to those firms. In response,
the affected Japanese firms increased their exports to non-targeted Chinese
firms and firms in countries aligned with the United States. |