How does OFDI help enterprises resolve the “bottleneck” problem: evidence from the US entity list

Using data from Chinese listed firms (2014-2022) and U.S. entity lists, this article employs difference-in-differences (DID) and triple-difference (DDD) models to explore the impact of OFDI on the innovation of Chinese enterprises under the enactment of the ECRA, and finds that OFDI can promote the innovation of restricted enterprises by expanding overseas revenue scale, overseas technology layout and enhancing the external financing capacity, where the impact of the timing of investment differs. The innovation promotion effect of OFDI helps to alleviate the “backward effect” of export control, and it is more obvious in technology-intensive industries and technology-seeking OFDI.