Trade Policy Uncertainty and Greenwashing: Evidence from China

This study examines the impact of trade policy uncertainty (TPU) on corporate greenwashing using data from China’s A-share listed firms (2012–2022). The results reveal a significantly negative relationship between TPU and greenwashing. The mechanism tests identify three channels: supply chain stability, government environmental subsidies and R&D investment. Heterogeneity analysis shows that this effect is stronger in non-recessionary periods, among firms with politically connections, subject to greater public attention, or involved in supply chain finance. TPU also promotes substantive environmental performance and improves corporate investment efficiency. These findings offer valuable insights for businesses balancing survival pressure and social responsibility.