1 in 3 Asian firms seek more trade with South Asia

Over 1 in 3 Asian companies are looking to trade more with South Asia and Europe whilst over 1 in 4 plan to trade less with North America, according to a 2025 survey by HSBC.

Over 1 in 3 Asian companies are looking to trade more with South Asia and Europe whilst over 1 in 4 plan to trade less with North America, according to a 2025 survey by HSBC.

In a poll of over 2,750 international firms across 7 Asian markets, over 8 in 10 (83%) said that they are rethinking their long-term business model on the back of recent trade policy changes.

Nearly the same (81%) share of respondents said that trade uncertainty has made them more cautious about expansion and investments.

Asian firms are bracing for an average revenue decline of 18% due to supply chain delays.

“Against a backdrop of trade uncertainty, many companies have taken a pause on their capital expenditure so that they can assess the new normal,” said Aditya Gahlaut, region head of Global Trade Solutions, Asia at HSBC.

“Capex is never an overnight decision, but what is constant is that wherever trade flows, investment always follows,” Gahlaut added.

Amidst this backdrop, 38% of Asian firms are looking to increase trade with South Asia, whilst 36% are eyeing more business with Europe.

In contrast, 28% are looking to decrease trade with North America, although a separate 23% are still looking to increase trade to the region.

Over the next two years, 52% of Asian firms are considering or in the process of moving production to (or increasing production in) China.

The equivalent figure for South Asia is 39%; for Europe it is 35%; for the US it is 29%, and for the Middle East it is 28%, the survey found.

Over half (51%) of Asia firms expressed concern about rising costs due to the tariffs and other trade-related factors.

Over 1 in 3 (34%) have adjusted prices to reflect higher costs, and another 51% are planning to do the same.