– Findings of a supply chain research study commissioned by the HKTDC explain that even amidst tense US-China relations, numerous United States business stay deeply taken part in the Chinese market, especially in the Guangdong-Hong Kong-Macao Greater Bay Area due to its distinct and extremely focused provider network that is tough to change
– Mainland business are actively diversifying their supply chains and utilizing Hong Kong as a supply chain management centre, with the city playing an essential function in local supply chain change
– Hong Kong is a “superconnector” that functions as an essential entrance for mainland business to broaden abroad and for worldwide business to access the Chinese Mainland market and local supply chains
HONG KONG, Nov 13, 2025 – (ACN Newswire)– Hong Kong’s status as the preeminent supply chain “superconnector” has actually been declared by a significant brand-new US-Hong Kong research study effort. This was among the crucial findings of”Tactically Leveraging Supply Chains to Access the Asian Market”, a significant brand-new research study effort commissioned by the Hong Kong Trade Development Council (HKTDC) and performed by the Bay Area Council Economic Institute of the United States.
At the heart of the research study is a prompt analysis of the methods which the shift in United States trade policy has actually set off the sped up reconfiguration of international supply chains, producing a raft of brand-new obstacles and chances along the method.
While complete information of the analysis will be released in December, initial findings presented in the run-up to the 15th Asian Logistics, Maritime and Aviation Conference (ALMAC) show increased geopolitical stress, progressing trade policies, ecological pressures and technological developments as ending up being the cumulative driver for a supply chain transformation that is affecting every element of the international economy. In the wake of this mass recalibration, business are reassessing their operations and aiming to handle hitherto unencountered dangers, guaranteeing that strength is now prioritised together with expense management and constant competitiveness. This will undoubtedly affect the primacy of Asia’s function within this changed landscape.
The United States research study group was headed bySean Randolph, Senior Director of the Bay Area Council Economic Institutea recognized authority on financial and policy problems. Detailing the improvement underway, Mr Randolph stated that the adoption of techniques such as reshoring, nearshoring and establishing redundant supply paths by lots of worldwide companies is speeding up the regionalisation of supply chains. This shift, he stated, has actually been partially driven by the local trade arrangements in location, however likewise by the requirement for higher supply chain security and a desire for distance.
Broadening on this, Mr Randolph stated: “Companies are diversifying their production bases, while transferring particular activities from China to other nations in Southeast Asia, India and Mexico– embracing the so-called ‘China +1’ technique in order to make sure strength and lower threat direct exposure.
“At the very same time, in spite of the continuous bilateral friction, it is significant that lots of United States business stay deeply engaged with China. This is mainly on account of the nation’s distinct concentration of providers– specifically when it comes to such areas as the Guangdong-Hong Kong-Macao Greater Bay Area (GBA)– which can not be quickly changed or reproduced in other places. A number of current studies and statements– consisting of significant Chinese Mainland financial investment dedications by companies of the stature of Nvidia and Apple– have actually plainly shown that, for numerous United States companies, China stays an essential area, with their engagement at least partially due to the indispensability of the more comprehensive local supply chains.”
Hong Kong can benefit as mainland business seek to diversify supply chains
Keeping in mind that the brand-new tariffs and President Trump’s altered trade concerns have actually offered some nations relative benefits when exporting to the United States, HKTDC Director of Research Irina Fan stated: “In an advancement most likely to reinforce China’s stature as a production base, following early November’s US-China trade contract, Chinese imports to the United States will undergo a 20% tariff rate (10% mutual tariff + 10% fentanyl associated) for the duration 10 November 2025 to 10 November 2026. This relatively low tariff level puts China-based providers on a par with a number of their Southeast Asia equivalents, while offering them with a considerable competitive benefit over nations with a greater tariff rate.”
Keeping that this does not recommend that Chinese Mainland services are contented about their status, Ms Fan included: “Currently, lots of mainland business are proactively taking actions to diversify and enhance their supply chains, with a considerable variety of them leveraging Hong Kong as their supply chain management centre. In General, Hong Kong is plainly set to play a progressively essential function in the continuous supply chain change procedure, a modification that is being driven by the area’s much deeper financial combination and the brand-new generation of supply chain networks.”
The report mentioned the electrical lorry (EV) sector as one example where Hong Kong is currently playing a critical function in the local supply chain improvement procedure. As mainland-based vehicle producers, in addition to their worldwide equivalents, prioritise the growth of EV and battery production in Southeast Asia, Hong Kong has more than showed its worth as a vital financial investment and monetary center, functioning as a reliable avenue for considerable capital to be carried into nations such as Indonesia, Thailand and Malaysia. More usually, current financial investment information likewise plainly suggested that Chinese Mainland business are progressively using Hong Kong as the assistance platform for a number of their local tasks.
This result is most likely to be reinforced by Hong Kong’s extensive monetary and expert services sectors, along with the city’s dexterity in adjusting to technological change and the progressing regulative landscape– associates that jointly position it as a vital nexus for worldwide organizations.
Summarizing the report’s evaluation of Hong Kong, Ms Fan stated: “Essentially, this brand-new research study highlights Hong Kong’s important functions as both a superconnector and a super-value-adder, while verifying the city’s status as the essential enabler for any mainland business wanting to broaden overseas, and all at once working as an entrance for any international business seeking to access the revitalised local supply chains and the China market. This universality is shown within Hong Kong itself, with the city now home to an ever-higher variety of abroad services, consisting of 1,390 United States business, since June 2024.”
Flagship logistics occasion set to deal with local supply chain advancements
The increase of local supply chains and the ramifications for worldwide trade will be amongst the lots of crucial concerns dealt with at the approaching ALMAC, which will be held at the Hong Kong Convention and Exhibition Centre on 17 and 18 November. Arranged by the Hong Kong SAR Government and the HKTDC, the occasion will combine some 80 prominent speakers and is anticipated to bring in 2,300 individuals from more than 40 nations and areas. In line with the policies detailed in the Fourth Plenary Session of the 20th Communist Party of China Central Committee and the 2025 Policy Address, the occasion will concentrate on a number of the current relocate to even more boost Hong Kong’s status as a global shipping centre and worldwide logistics center.
As the yearly flagship occasion for the logistics, maritime and air travel sectors, ALMAC 2025 is running under the style”Cooperation and Growth in the New Trade Landscape”showing the occasion’s dedication to checking out patterns and chances in the fields of logistics, shipping and air cargo. Eventually, the goals of the occasion are to promote the top quality advancement of logistics and supply chain management, deepen global engagement, and assist in useful cooperation throughout the logistics market.
Report and photo download: https://bit.ly/49Q8aFI
Tactically Leveraging Supply Chains to Access the Asian Market”is the significant brand-new research study effort commissioned by the HKTDC and performed by the Bay Area Council Economic Institute of the United States. Envisioned at an interview to reveal the release of the report are, from left,Irina Fan,Director of Research of the HKTDCandSean Randolph,Senior Director of the Bay Area Council Economic Institute
Irina Fan,Director of Research of the HKTDC, kept in mind that numerous Chinese Mainland business are proactively taking actions to diversify and reinforce their supply chains, with a considerable variety of them leveraging Hong Kong as their supply chain management centre. In General, Hong Kong is plainly set to play a progressively essential function in the continuous supply chain change procedure
Sean Randolph,Senior Director of the Bay Area Council Economic Institute, stated that in spite of the continuous bilateral friction, it is noteworthy that lots of United States business stay deeply engaged with China. This is mostly on account of the nation’s distinct concentration of providers– specifically when it comes to such areas as the Guangdong-Hong Kong-Macao Greater Bay Area– which can not be quickly changed or reproduced in other places
Intro to Sean Randolph, Senior Director, Bay Area Council Economic Institute
Sean Randolphfunctioned as President and Chief Executive of the Bay Area Council Economic Institute from 1998 to 2015. The Economic Institute is a business-supported public law research study and technique organisation that concentrates on the economy of the San Francisco/Silicon Valley Bay Area and California. He formerly acted as Director of International Trade for the State of California, and, before that, as International Director General of the Pacific Basin Economic Council (PBEC), a 1,000-member Asia-Pacific organization organisation. His expert profession consists of service in the United States Government on Congressional personnels, the White House personnel, and in senior positions at the Departments of State and Energy, consisting of as Deputy/Ambassador-at-Large for Pacific Basin Affairs and Deputy Assistant Secretary of Energy for International Affairs. Based in San Francisco, he composes for local, United States and international media and regularly talks to Bay Area and global audiences on innovation, development and worldwide financial problems.
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About HKTDC
The Hong Kong Trade Development Council (HKTDC) is a statutory body developed in 1966 to promote, help and establish Hong Kong’s trade. With over 50 workplaces internationally, consisting of 13 in the Chinese Mainland, the HKTDC promotes Hong Kong as a two-way international financial investment and organization center. The HKTDC arranges global exhibits, conferences and organization objectives to produce organization chances for business, especially little and medium-sized business (SMEs), in the mainland and worldwide markets. The HKTDC likewise offers updated market insights and item details through research study reports and digital news channels. For more details, please check out: www.hktdc.com/aboutus.
Subject: Press release summary
