Hong Kong firms hold back hiring amid trade policy tension

49% of Hong Kong businesses say they plan to postpone major investments.

As trade tensions between the U.S. and China continue, 49% of Hong Kong businesses say they plan to postpone major investments, and 36% may freeze hiring during the current 90-day suspension of U.S. tariffs, according to new research from the Sandpiper Group.

The survey, which included over 3,000 business leaders across 27 markets, found that concern in Hong Kong far exceeds global averages. 86% of respondents in the city view the trade war as a major threat to their business prospects — 15 points higher than the global figure.

More broadly, the study revealed a significant shift in global sentiment, with 70% of business leaders blaming U.S. trade policy for the conflict, compared to 61% who point to China.

A similar proportion (72%) believe the U.S. should take the first step to de-escalate. The reputational fallout is also steeper for the U.S., with 70% saying its global standing has suffered, versus 60% for China.

Globally, businesses are increasingly cautious. 77% of respondents rank the trade war as one of their top concerns, and 64% expect revenues to decline over the coming year as a result. 56% believe the U.S. economy will be the most severely affected.

Whilst 66% of global business leaders expect the dispute could be resolved within six months, only 21% feel well prepared to navigate the geopolitical risks. Many report gaps in tools such as crisis scenario planning, policy monitoring, and government engagement strategies.