This paper investigates the impact of trade frictions on the internationalization level of Chinese enterprises through the lenses of comparative advantage theory and institutional theory. Taking China’s A-share listed companies involved in cross-border M&As between 2000 and 2020 as the sample, the study unveils the following discoveries: In the short term, trade frictions enhance both the breadth and depth of corporate internationalization. Government subsidies positively moderate the correlation between trade frictions and internationalization breadth, whereas tax incentives negatively moderate this relationship. In the long term, trade frictions constrain internationalization breadth but foster internationalization depth. The formal and informal institutions of the host country positively moderate the correlation between trade frictions and internationalization depth. Government intervention primarily regulates the short-term effect of trade frictions on internationalization breadth, while the long-term effect on internationalization depth is predominantly affected by the institutional quality of the host country. This paper examines the impact of trade frictions on the internationalization breadth and depth of cross-border M&A enterprises in both short and long terms, which provides new findings on the relationship between trade frictions and corporate internationalization, and underscores the roles of government intervention and host-country institutional quality. It enhances our comprehension of corporate internationalization behavior during the period of trade tensions and provides decision-making references for government policy formulation.