Supply Chain Disruption and Import Strategy: Evidence from the Great East Japan Earthquake

Fan Lu, Zhicong Li and Xinrong Cai

China & World Economy, 2025, vol. 33, issue 1, 132-161

Abstract: Global supply chain networks foster collaboration but accelerate cross‐border risk transmission. This study investigates the effect of the 2011 East Japan earthquake on Chinese firms' import strategies. The findings reveal that the disruption led to a shift toward supply chain concentration, with firms reducing the diversification of import sources. There was a slight increase in the number of countries from which firms sourced imports but import shares became more concentrated, reflecting a reliance on fewer, centralized suppliers. Firms affected by the earthquake prioritized long‐term partnerships and sought suppliers in regions with lower natural disaster risks, aiming to mitigate supply chain vulnerabilities and reduce switching costs. The findings also show that state‐owned enterprises, private firms, and research and development‐intensive firms were more inclined to centralize their import sources. This suggests that these firms, leveraging their larger scale, substantial resources, and robust risk management strategies, favored a more concentrated sourcing approach in order to better control their supply chains and ensure stability in the face of global disruptions.

Date: 2025
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