Global supply chains are undergoing a fundamental reconfiguration as businesses adjust to a fast-evolving trade environment shaped by geopolitical tensions, protectionist policies, and lessons from the pandemic. The acceleration of reshoring, nearshoring, and “friendshoring” illustrates a new phase of diversification — where cost efficiency is balanced against resilience, security, and market access.
In 2025, the United States expanded its tariff regime across nearly all trading partners, from a baseline 10% duty to specific levies reaching 50% on steel and aluminum, and 25% on autos and parts. These tariffs, aimed at narrowing trade deficits and reshaping production incentives, have catalyzed global supply chain adjustments. Corporations are increasingly adopting dual strategies — maintaining one structure for U.S.-bound trade and another for the rest of the world — to mitigate risks and navigate fragmented market rules.
What the New Supply Chain Map Means for Your Sourcing Strategy in 2026?
In view of this, a new research commissioned by HKTDC and conducted by the Bay Area Council Economic Institute of the United States was published to uncover potential change drivers in this global landscape. This article summarizes the key findings and why global buyers and suppliers should care for it.
Asia and the GBA Come Into Play in Supply Chain Transformation
For multinational manufacturers, Asia — and particularly Southeast Asia — has become the pivot of this evolving landscape. Production shifts out of China, once primarily cost-driven, now reflect geopolitical and strategic considerations. While the “China + 1” model has seen Vietnam, India, and Mexico absorb redirected investment, many U.S. and global companies remain in China to serve its vast domestic market. The challenge is balancing diversification with the unmatched cluster advantages found in China’s Greater Bay Area (GBA).
GBA: The Next Hub for Global Trade
The GBA — spanning Hong Kong, Macao, and 9 Guangdong cities — represents one of the world’s densest networks for advanced manufacturing, innovation, and trade services. Within this ecosystem, Hong Kong stands out as a vital connector. Its rule-of-law framework, common law judicial system, robust IP protection, and zero‑tariff regime provide confidence and transparency for cross-border transactions. Coupled with world-class financial infrastructure and proximity to Chinese Mainland production bases, Hong Kong enables companies to manage risk, finance expansion, and coordinate operations across Asia with agility.
How Can Global Buyers & Suppliers Take Advantage of This Change?
Explore Full Research Findings
Access detailed insights, including download link to the full PDF report, via:
Finding Opportunity in Asia’s Changing Supply Chain Landscape: Leveraging Hong Kong
hktdc.com Sourcing: Trusted Global Network Across GBA, ASEAN and the World
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Hong Kong & The Supply Chain FAQ
1. What is driving the current reconfiguration of global supply chains?
The shift stems from a combination of geopolitical tensions, rising tariffs, and pandemic-induced disruptions. Companies are prioritizing supply chain resilience, diversification, and risk management over pure cost efficiency.
2. Why is the Greater Bay Area (GBA) important for supply chains?
The GBA integrates Hong Kong, Macao, and 9 cities in Guangdong Province, forming one of the world’s most advanced and interconnected production regions. It combines China’s manufacturing strength with Hong Kong’s finance, logistics, and professional services.
3. How does Hong Kong benefit global buyers and suppliers?
Hong Kong offers a zero‑tariff environment, transparent legal system, and extensive logistics infrastructure. Buyers can access Chinese suppliers efficiently while ensuring compliance, quality assurance, and financial security within a business‑friendly international hub.
On the other hand, suppliers can use Hong Kong to raise capital, manage intellectual property, and participate in trade agreements like CEPA, which allows tariff‑free export of eligible goods and services to Chinese Mainland.
