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Trade shocks and destinations transfer of new energy vehicle safety incidents based on media coverage

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  • Cao, Li
  • Huang, Shiyuan
  • Hao, Yutong
  • Gao, Yuandong

Abstract

The trade pattern of Chinese NEV exports has been largely reshaped by the media coverage. Such a shock stimulates the deflection of Chinese NEV export, while why NEV enterprises expand to certain countries instead of others is still unknown. This paper conducts an empirical analysis on the panel data of China mainstream media and 63 trading partners from 2020 to 2023. Through analysis, the following conclusions are drawn. (1) There is indeed a media exaggeration problem in the export of NEVs in China. NEV negative safety incidents frequently exposed in recent years widens China's NEV trade deficit. For every 1 % increase in NEV safety incidents, about 2.396 % decline occurs in China's NEV exports. (2) China's NEV exports are affected by the quality safety incidents of trading partners. Compared to those involved in NVE safety incidents, trading partners without negative incidents are more sensitive to China's negative NEV reports. Although NEV safety incidents bring export shocks, other countries with NEV safety incidents can provide market transfer opportunities and exporters can reduce losses through market substitution. The findings of this paper provide a reference for the opening of China's NEV industry, and are expected to stimulate the sustainable development of NEVs.

Suggested Citation

  • Cao, Li & Huang, Shiyuan & Hao, Yutong & Gao, Yuandong, 2025. "Trade shocks and destinations transfer of new energy vehicle safety incidents based on media coverage," International Review of Economics & Finance, Elsevier, vol. 103(C).
    • Handle: RePEc:eee:reveco:v:103:y:2025:i:c:s1059056025006847
    DOI: 10.1016/j.iref.2025.104521
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