HSBC Survey: Firms Fear Rising Protectionism
Businesses in Asia are concerned about the cost of rising protectionism, according to a new report from British bank HSBC.
Three in five (61 percent) firms think governments are becoming more protective of their domestic economies, according to 6,000 companies surveyed globally in HSBC's latest «Trade Navigator». This sentiment is strongest among companies in MENA (70 percent), and Asia-Pacific (68 percent).
In the U.S., 61 percent believe protectionism is on the rise, while in Europe, half (50 percent) are seeing a rise in protectionist tendencies.
Regional Ties Prioritised
The majority of firms are looking to regional partners to develop trade opportunities, with almost three quarters (74 percent) of overseas trade in Europe and Asia-Pacific being conducted within their «home» region. This trend is set to continue with regional ties being prioritised in firms’ expansion plans for the next three to five years.
Focussing on the impact of government policies, those designed to strengthen regional ties such as China’s «Belt and Road Initiative» (40 percent) and ASEAN’s 2025 strategy (37 percent) were cited most frequently as having a positive impact on international business.
