News Release
6 November 2019

Businesses globally plan to capitalise on
disruption of global trade: HSBC*** Japanese firms more cautious than global peers******57% of Japanese firms expecting growth next year, compared to 79% globally ***Global supply chains may be shifting, but businesses around the world are still confident they will findgrowth in new markets, according to a new HSBC report.
The latest HSBC‘Navigator: Now, next and how’ survey of over 9,100 companies in 35 markets,including 350 Japanese companies, finds that 47% of companies globally are more optimistic now thanin 2018, with 79% expecting their sales to rise over the next 12 months.
Firms around the world remain upbeat despite economic headwinds
The survey found four in five global companies (81%) are positive in their outlook for cross-bordercommerce, up 4 percentage points on last year, despite 65% thinking governments are adopting
increasingly protectionist trade policies.
International expansion is cited as the top growth driver by bullish firms (38%) globally as well as beinga defensive reaction to threats (29%). Entering new markets is the joint top change global businesses
plan to make to their supply chains over the next three years, up five points year-on-year to 28%,
alongside increased digitisation.
Japanese firms are less optimistic about growth
Companies in Japan hold a more cautious outlook, with just over half (57%) expecting growth in thenext year, compared with 79% globally. Despite the short term pessimism, longer term expectations
shine brighter for Japanese companies, with 62% expecting growth in the next five years, although thisis below the global average of 82%.
Of Japanese businesses that are expecting to grow over the next year, access to new markets, improved
productivity, investment in technology, the introduction of new products and services andtransformative technologies are cited as the top growth drivers.
Trade outlook – Japan’s preferred trading partners remain, but reduce in importanceTrading within Asia-Pacific (58%), North America (31%) and Europe (20%) remains fundamental forbusinesses in Japan. However, a decline in the importance of more than 10 percentage points isprojected for all three. Mainland China, Thailand and Hong Kong are Japan’s three most importantpartners in the region.
Over the next three to five years, mainland China (18%), the US (17%) and India (8%) are projected tobecome the top markets for Japanese firms.

Principal members of HSBC in Japan are:
The Hongkong and Shanghai Banking Corporation Limited
HSBC Securities (Japan) Limited
HSBC Global Asset Management (Japan) K.K.

Takahisa Yano, Head of Global Trade and Receivables Finance, HSBC Japan, said: “Businesses areabsorbing changes in the political landscape, whether it’s new tariffs that disrupt supply chains or tradeagreements that smooth a path to new markets. These strategies include cutting costs, entering jointventures or partnerships with local companies and selling more online. By keeping an eye on the longterm trends reshaping the competitive landscape, businesses can position themselves to capture
opportunities as they emerge.”
Lawmakers in a number of markets have enacted significant trade control measures, including wellpublicised tariffs, since the 2018 survey. However, efforts have also been made to further liberalise
trade, particularly across Asia and Europe1. HSBC forecasts that the global economy will expand by
2.5% in 2020 following 2.6% growth this year.
Confidence remains strong in both mainland China (86% of companies) and the US (80%), where ratecuts and deep domestic markets may be helping to insulate companies from bilateral trade tensions.
Continuing a trend seen in 2018’s survey, most markets are planning to boost their intra-regional tradein the coming three to five years. From an inter-regional perspective, Europe looks set to become abright spot with 39% of companies globally naming a European market as a top three priority forbusiness expansion in the next three to five years, up six points from a year ago.

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Note to editors:
HSBC Navigator: Now, next and how for business
HSBC’s Navigator report comprises a global survey gauging business sentiment and expectations on trade activity
and business growth from 9,131 decision-makers in 35 markets. Research was conducted by Kantar for HSBC
between August and September 2019. HSBC’s Navigator helps businesses capitalise on new opportunities andmake informed decisions for the future by understanding the outlook for international trade.
The full report can be accessed here: https://www.business.hsbc.com/navigator
The Japan report can be accessed here: https://www.business.hsbc.com/-/media/cmb/campaigns/navigator2019/pdf/navigator-report-japan-en.pdf
Interviews for the Navigator: Now, next and how survey were conducted in Argentina, Australia, Bangladesh,Belgium, Brazil, Canada, Egypt, France, Germany, Greece, Hong Kong, India, Indonesia, Ireland, Italy, Japan,mainland China, Malaysia, Mexico, the Netherlands, Poland, Russia, Saudi Arabia, Singapore, South Africa, SouthKorea, Spain, Sweden, Switzerland, Thailand, Turkey, the UAE, the UK, the USA and Vietnam.
Over 5,000 of the companies interviewed were SMEs making annual sales of between US$5m and US$50m, withthe remainder being larger enterprises.
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers
worldwide from offices in 65 countries and territories in our geographical regions: Europe, Asia, North America,Latin America, and Middle East and North Africa. With assets of US$2,728bn at 30 September 2019, HSBC is one of
the world’s largest banking and financial services organisations.

1The US has imposed tariffs on most imports from China and China’s government has responded in kind, while reducing duties onhundreds of products for non-US partners. Meanwhile, the US, Mexico and Canada signed a ‘new NAFTA’ agreement, theComprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) entered into force and the European Union
implemented a major free trade deal with Japan.