TECH & INNOVATION  /  E-COMMERCE

By Anthony Leung | June 9, 2025

Challenging times lie ahead for global trade and supply chains. Check out our tips on how Hong Kong businesses can strengthen connections with mainland China and overseas markets.

• Today’s businesses are operating in a complex environment, with global trade swings, tariffs, and economic headwinds to navigate.
• In Hong Kong, businesses seeking to strengthen their position and support Hong Kong’s status as a global business hub need to adapt fast. 
• With supply chain management a major area of focus, business owners need to address geopolitical and regulatory challenges with continuous investment in AI and innovative technologies, while identifying opportunities through market agreements and new customs models.

2025 has been a tumultuous year so far. Global uncertainties continue to disrupt international trade and capital flows, leaving businesses striving to stay ahead of the fallout. Mounting risks to investments and devaluation of capital are exerting pressure on consumer confidence and slowing global economic growth.

Yet in Hong Kong, economic resilience is second nature. Businesses and consumers in the city are well-versed in weathering the storms of disruption and regional volatility with resourcefulness and resolve. As ever, any economic instability highlights Hong Kong’s determination to adapt, innovate and confront change head-on.

Here are three essential supply chain tips to help Hong Kong businesses navigate the evolving landscape.

1. Navigate regulatory and compliance challenges

Recent frequent changes in trade tariffs have significantly increased uncertainties and complexities for local businesses. To ensure business continuity, it is essential for companies to stay informed about the latest changes and swiftly adapt to new regulatory requirements.

As businesses navigate the nuances of evolving tariffs and import regulations across various markets, FedEx has been at our customers’ side to help them power through these challenges. For instance, we launched a dedicated Tariff Information Hub that offers informative insights on tariff changes and practical customs clearance tips.

Beyond keeping up with regulatory changes, it is equally important for local businesses to mitigate risk by diversifying their market exposure, reducing overreliance on any single trade lane or regulatory regime.

2. Identify opportunities through market agreements and new customs models

In today’s interconnected global environment, it is crucial for local businesses to leverage the collaborative agreements and customs models established between international businesses and governments. These initiatives simplify customs clearance procedures, streamline delivery processes, and facilitate trade opportunities in and out of Hong Kong, as well as across markets.

A prime example of such opportunities lies in the Greater Bay Area (GBA), which comprises the two Special Administrative Regions of Hong Kong and Macau, and the nine municipalities in Guangdong Province. It offers tremendous opportunities to global businesses, investors and professionals. In particular, Hong Kong plays a pivotal role as the “facilitator” and “promotor” that helps global businesses unlock golden opportunities in the GBA.

Supporting this role is the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), signed in 2003, marking the first free trade agreement between mainland China and Hong Kong. CEPA grants zero import tariffs on eligible Hong Kong exports and preferential market access for Hong Kong companies in 47 service sectors, including logistics and transport.

In December 2024, FedEx achieved another milestone by signing an MOU with the Hong Kong Customs and Excise Department (C&ED) on the Cross-Boundary Express Cargo Clearance Facilitation Arrangement (CEFA). We became the first company to join the scheme, enabling more efficient customs clearance for inbound shipments from mainland China.

Given the current situation, it is essential for local businesses to leverage existing agreements to continue expanding their operations. By taking advantage of initiatives such as the CEPA and tapping into opportunities within the Greater Bay Area, businesses are well-positioned to expand and thrive in mainland China.

3. Adopt advanced technologies and AI-powered solutions to enhance operational resilience and customer experiences

Around 66% of retail buyers have ended relationships with suppliers due to delivery issues including poor shipment tracking, inefficient pick-up scheduling, and confusing customs requirements. A recent report indicated that using AI can lead to a 20-50% reduction in inventory errors with advanced forecasting while cutting warehousing costs by 5-10% and administration costs by 25-40%.

At FedEx, our vision is to make supply chains smarter for everyone by harnessing the power of data and digital tools. Our recently launched solution, FedEx Surround®, provides near-real-time tracking and AI-powered dashboards for improved visibility. This is especially important for high-value and critical shipments.

By adopting AI-powered solutions provided by logistics suppliers like FedEx, businesses can optimize operations and expand their footprint more easily through enhanced visibility and control.

These advancements enable new levels of near-real-time tracking, predictive analytics and inventory management to improve overall efficiency and competitiveness. Especially within the fast-paced e-commerce industry, these innovations help ensure a seamless and satisfying shopping experience that meets customers’ rising expectations.

Effective logistics is the backbone of global trade. By embracing collaboration and innovation, we can transform challenges in today’s complex global environment into opportunities that drive efficiency and growth for businesses. FedEx strives to continue strengthening its logistics and supply chain operations in Hong Kong, reinforcing its status as one of Asia’s leading logistics hubs and empowering customers with optimal resources.