Abstract Using data on employees and the U.S. Entity List for A-share listed companies from 2011to 2022, this study employs a multi-period difference-in-differences ( DID ) model to examine how U.S. export controls affect the upgrading of corporate human capital. Empirical results indicate that being added to the Entity List significantly reduces the proportion of high-skilled labor within firms, thereby hindering the upgrading of human capital. Moreover, this adverse effect exhibits a persistent and intensifying trend over time. Mechanism tests reveal that the Entity List primarily negatively impacts the human capital structure of restricted firms through two channels: strengthening the financing constraints effect and weakening the market competition effect. Heterogeneity analysis further shows that the negative impact on human capital structure is more pronounced for non-innovative firms, firms located in regions with lower levels of openness, state-owned enterprises, and firms whose board directors lack overseas experience. This study enriches micro-level impact studies on U.S. export controls toward China and provides policy insights for mitigating the negative effects of trade frictions on employment structures.
2026, Vol. 43 
