Study On Structure Choice And Firms’ Co-opetition Incentive In A Cross-border Supply Chain Considering The Impact Of Tax

The cross-border supply chain originates from the outsourcing of functional links in the global supply chain and from the international division of labor of enterprises.Through all the welter of change and in the fast-developing international political and economic situation,China is playing a more and more crucial role in the global supply chain.As the world’s factory in the earlier stage,China now becomes the supply chain base and exports products and services of famous independent brands on the “Belt and Road” map.Under the business situation that many Chinese contract manufacturers have successfully developed their own brands,the relationship between Chinese enterprises and international brands has also changed from the original OEM service relationship to a more complex relationship of competition and cooperation.It is noted that,in recent years,a series of policy adjustments regarding issues such as “China US Trade Frictions”,“Belt and Road Initiatives”,“Manufacturing Backflow” and “Deglobalization” have all focused on taxation.At the same time,the ways and roles of Chinese manufacturing enterprises participating in the global supply chain have changed profoundly.The structural adjustment of cross-border supply chain has become a major strategic decision that must be faced.The competition and cooperation game analysis behind it is the fundamental to make scientific decisions.Therefore,starting from the emerging hot spot of tax system impact,this paper combs the existing literature of cross-border supply chain,and in depth explores the motivation of cross-border supply chain structure adjustment and enterprise competition and cooperation which are both influenced by tax system,combined with specific business practice.This article further combines the world trend of green and high-quality development,improves the social welfare of the government,and provides relevant enlightenment for the adjustment of strategic policies of enterprises,supply chain and the government.The main research work and content of this paper are as follows:(1)From the perspective of cross-border import supply chain,considering the influence of tariff,this paper establishes a game model of competition and cooperation to study the purchase strategy decision-making of international brands.Considering the quality uncertainty of imported raw materials and spare parts,it is found that when the quality of imported raw materials is high and the cost of contract manufacturers’ purchasing from China is also relatively high,or when the quality of imported raw materials is low and the cost of contract manufacturers’ purchasing from China is also relatively low,international brand manufacturers and contract manufacturers can achieve a win-win situation.When the quality of overseas raw materials is low,higher tariff rate is beneficial to prevent "foreign garbage" from entering the country,and to reduce domestic environmental pollution.Conversely,when the quality of overseas raw materials is high,lower tariff rate is beneficial protect the consumption of stateowned resources and to improve social welfare.(2)From the perspective of cross-border export supply chain,considering the imbalance of corporate income tax and the opportunity of tax system planning in different countries or regions,this paper establishes a competition model between supply chains to study the choices of overseas distribution strategy of emerging multinational companies.Counterintuitively,driven by competition,MNFs tend to keep their profits in the areas with high tax rates in the upstream rather than in the areas with low tax rates in the downstream in order to seek the benefits of tax planning.In addition,it is found that the overseas distribution strategies of new MNFs depend on the extra cost of their overseas operations.When the extra cost is in the middle range,there is a win-win interval between the two MNFs.In the case of demand uncertainty,we prove the uniqueness of equilibrium solution by using contraction mapping method and supermodel game concept,and find that mature MNFs tend to set transfer price as the bottom line,while the transfer pricing strategy of emerging MNCs depends on the survival failure rate.(3)Considering the influence of China’s partial export tax rebate policy,this paper establishes a supply chain competition model to study the strategic choice of multinational manufacturing outsourcing.The results show that with the increase of the relative market potential of Southeast Asia market and China market,the preferences of multinational companies and contract manufacturers on outsourcing structure have both reversed twice,while the trends are of the opposite ways.We further characterize the win-win interval between multinational companies and contract manufacturers.When the Southeast Asian market is large,higher export tax rebate rate,on the one hand,may attract contract manufacturers to stay in China for production and to stimulate export volume,on the other hand,may improve environmental sustainability and social welfare at the same time.