{"id":404,"date":"2026-04-27T11:32:47","date_gmt":"2026-04-27T10:32:47","guid":{"rendered":"https:\/\/www.farhi-innovation-lab.fr\/?post_type=publication&#038;p=404"},"modified":"2026-04-27T14:12:42","modified_gmt":"2026-04-27T13:12:42","slug":"opposing-firm-level-responses-to-the-china-shock-horizontal-competition-versus-vertical-relationships","status":"publish","type":"publication","link":"https:\/\/www.farhi-innovation-lab.fr\/fr\/publication\/opposing-firm-level-responses-to-the-china-shock-horizontal-competition-versus-vertical-relationships\/","title":{"rendered":"Opposing firm-level Responses to the China Shock: Horizontal Competition Versus Vertical Relationships?"},"content":{"rendered":"<p class=\"wp-block-paragraph\">We decompose the \u201cChina shock\u201d into two components that induce different adjustments for firms exposed to Chinese exports: an output shock affecting firms selling goods that compete with similar imported Chinese goods, and an input supply shock affecting firms using inputs similar to the imported Chinese goods. Combining French accounting, customs, and patent information at the firm-level, we show that the output shock is detrimental to firms\u2019 sales, employment and innovation. Moreover, this negative impact is concentrated on low-productivity firms. By contrast, we find a positive effect &#8211; although often not significant &#8211; of the input supply shock on firms\u2019 sales, employment and innovation.<\/p>","protected":false},"excerpt":{"rendered":"<p>We decompose the \u201cChina shock\u201d into two components that induce different adjustments for firms exposed to Chinese exports: an output shock affecting firms selling goods that compete with similar imported Chinese goods, and an input supply shock affecting firms using inputs similar to the imported Chinese goods. Combining French accounting, customs, and patent information at [&hellip;]<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":true},"thematique":[76,79],"type-de-publication":[50],"class_list":["post-404","publication","type-publication","status-publish","hentry","thematique-productivity","thematique-trade","type-de-publication-publication"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Opposing firm-level Responses to the China Shock: Horizontal Competition Versus Vertical Relationships? - Farhi Innovation Lab<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Opposing firm-level Responses to the China Shock: Horizontal Competition Versus Vertical Relationships? - Farhi Innovation Lab\" \/>\n<meta property=\"og:description\" content=\"We decompose the \u201cChina shock\u201d into two components that induce different adjustments for firms exposed to Chinese exports: an output shock affecting firms selling goods that compete with similar imported Chinese goods, and an input supply shock affecting firms using inputs similar to the imported Chinese goods. Combining French accounting, customs, and patent information at [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.farhi-innovation-lab.fr\/fr\/publication\/opposing-firm-level-responses-to-the-china-shock-horizontal-competition-versus-vertical-relationships\/\" \/>\n<meta property=\"og:site_name\" content=\"Farhi Innovation Lab\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-27T13:12:42+00:00\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publication\\\/opposing-firm-level-responses-to-the-china-shock-horizontal-competition-versus-vertical-relationships\\\/\",\"url\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publication\\\/opposing-firm-level-responses-to-the-china-shock-horizontal-competition-versus-vertical-relationships\\\/\",\"name\":\"Opposing firm-level Responses to the China Shock: Horizontal Competition Versus Vertical Relationships? - Farhi Innovation Lab\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#website\"},\"datePublished\":\"2026-04-27T10:32:47+00:00\",\"dateModified\":\"2026-04-27T13:12:42+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publication\\\/opposing-firm-level-responses-to-the-china-shock-horizontal-competition-versus-vertical-relationships\\\/#breadcrumb\"},\"inLanguage\":\"fr-FR\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publication\\\/opposing-firm-level-responses-to-the-china-shock-horizontal-competition-versus-vertical-relationships\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publication\\\/opposing-firm-level-responses-to-the-china-shock-horizontal-competition-versus-vertical-relationships\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Accueil\",\"item\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Publications\",\"item\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publications\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Opposing firm-level Responses to the China Shock: Horizontal Competition Versus Vertical Relationships?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#website\",\"url\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/\",\"name\":\"Farhi Innovation Lab\",\"description\":\"Economics of Institutions, Innovation, and Growth Chair\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"fr-FR\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#organization\",\"name\":\"Farhi Innovation Lab\",\"alternateName\":\"Farhi Innovation Lab\",\"url\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-FR\",\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/wp-content\\\/uploads\\\/2026\\\/04\\\/web-app-manifest-512x512-1.png\",\"contentUrl\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/wp-content\\\/uploads\\\/2026\\\/04\\\/web-app-manifest-512x512-1.png\",\"width\":512,\"height\":512,\"caption\":\"Farhi Innovation Lab\"},\"image\":{\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#\\\/schema\\\/logo\\\/image\\\/\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Opposing firm-level Responses to the China Shock: Horizontal Competition Versus Vertical Relationships? - Farhi Innovation Lab","robots":{"index":"noindex","follow":"follow"},"og_locale":"fr_FR","og_type":"article","og_title":"Opposing firm-level Responses to the China Shock: Horizontal Competition Versus Vertical Relationships? - Farhi Innovation Lab","og_description":"We decompose the \u201cChina shock\u201d into two components that induce different adjustments for firms exposed to Chinese exports: an output shock affecting firms selling goods that compete with similar imported Chinese goods, and an input supply shock affecting firms using inputs similar to the imported Chinese goods. 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