Abstract: This article studies the effects of enterprises’ failed export experience on their domestic business status from the angle of theoretical derivation and empirical facts. The results of theoretical analysis show that export failed enterprises will be more vulnerable to liquidity constraints compared with the domestic enterprises and sustained export enterprises. The empirical analysis uses difference-in-difference method and the propensity score variable weight regression to examine the short term effects and long term effects about the failed export experiences based on the Chinese industrial enterprises’ data. The results show that the domestic business conditions of domestic enterprises, export enterprises and failed export enterprises are not significantly different in the short term. But in the long run, the failed export experience has a negative influence on the enterprises’ domestic sales and financial situation.