The Impact of Global Supply Chain Restructuring on Foreign Investment Decisions in China’s Logistics and Manufacturing Industries

DOI

10.2991/978-94-6239-602-9_36How to use a DOI?

Keywords

Global supply chain reorganization; foreign investment decisions; supply chain disruptions; market fluctuations

Abstract

This article focuses on the internal driving factors and mechanism of action of foreign-funded enterprises’ investment decisions in China’s logistics and manufacturing industries under the background of global supply chain reorganization. To investigate the impact of supply chain restructuring on foreign direct investment (FDI) decisions amid global supply chain realignment, this study employs multiple regression analysis to construct baseline and interaction models using 113,097 observations from the Kaggle supply chain dataset (covering 94 countries). Results indicate that supply chain diversification exerts a significant negative impact on FDI, with coefficients ranging from -542.93 to -560.82; Geopolitical risk exhibits a significant positive correlation with FDI, with coefficients ranging from 96.63 to 106.48; the impact of supply chain restructuring on FDI depends on the risk environment, with an interaction coefficient of -37.44 with geopolitical risk, indicating that high risk amplifies the negative effects of restructuring; the Logistics Performance Index has a significantly negative impact on FDI, contrary to expectations. The model exhibits good fit, with an R² of 0.634 for the interaction model. This study reveals the conditional mechanism through which supply chain restructuring influences foreign investment, providing empirical evidence and differentiated recommendations for policymakers to optimize supply chain policies and for enterprises to formulate supply chain strategies and investment decisions.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Keyi Wang
AU  - Yanwen Wen
PY  - 2026
DA  - 2026/03/13
TI  - The Impact of Global Supply Chain Restructuring on Foreign Investment Decisions in China’s Logistics and Manufacturing Industries
BT  - Proceedings of the 2025 7th International Conference on Economic Management and Model Engineering (ICEMME 2025)
PB  - Atlantis Press
SP  - 391
EP  - 406
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-602-9_36
DO  - 10.2991/978-94-6239-602-9_36
ID  - Wang2026
ER  -