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Building resilience amidst geopolitical tensions: The case of U.S. MNE subsidiaries in China

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  • Yu, Jiang
  • Fang, Yuanxin
  • Bai, Yutong
  • Chen, Feng

Abstract

This study investigates how foreign subsidiaries build resilience amid home-host geopolitical tensions. Drawing on resilience and geopolitical risk management literature, we conduct an in-depth qualitative analysis of four U.S. MNE subsidiaries in China. Building on our findings, we propose a model of subsidiary resilience as a capability-building process that unfolds across three stages: before, during, and after geopolitical disruptions. Our results reveal two distinct resilience trajectories. Subsidiaries that exhibit a transformative resilience cycle engage in promotive resistance before disruption, followed by proactive adaptation during disruption and deep-level learning afterward, enabling them to ‘bounce forward’ to a stronger state. In contrast, subsidiaries following a stabilizing resilience cycle adopt defensive resistance, reactive adaptation, and surface-level learning, resulting in a return to pre-crisis conditions (‘bouncing back’). These findings uncover the critical processes determining whether and how subsidiaries maintain resilience over time. The paper concludes with implications for both research and practice.

Suggested Citation

  • Yu, Jiang & Fang, Yuanxin & Bai, Yutong & Chen, Feng, 2025. "Building resilience amidst geopolitical tensions: The case of U.S. MNE subsidiaries in China," Journal of International Management, Elsevier, vol. 31(4).
    • Handle: RePEc:eee:intman:v:31:y:2025:i:4:s1075425325000389
    DOI: 10.1016/j.intman.2025.101260
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