Report: Trade barriers are accelerating Chinese enterprise globalization

Efforts to reduce dependence on China are instead accelerating the global expansion of Chinese companies, according to the Global Supply Chain Report 2025 released by the HKUST Li & Fung Supply Chain Institute.

The report finds Chinese firms are rapidly building production, R&D and logistics hubs across Asia, the Middle East, Europe and the Americas, shifting from a “world’s factory” role to global supply-chain coordinators. It also highlights how AI, automation and new materials are reshaping power dynamics in industries such as EVs, solar, apparel and medical devices.

ESG regulations—especially in the EU—are now major determinants of where companies can operate, pushing supply chains toward locations with stronger sustainability infrastructure. Nearshoring shows mixed progress, with successes in Mexico and Central America but limited traction in apparel.