Trade fragmentation pushes firms toward Global South supply chains
Disrupted global trade is prompting businesses to diversify supply chains toward the Global South, says Standard Chartered's Benjamin Hung.
Disruptions to global trade are pushing businesses worldwide to rethink their supply chains, with many now looking toward the Global South for greater resilience. Benjamin Hung, President (International) of Standard Chartered Bank, said the world is becoming increasingly fragmented, and trade that was once direct is now being re-channeled and rerouted.
Speaking ahead of the 2026 China International Fair for Trade in Services (CIFTIS) in Beijing, Hung noted that most buyers and sellers he engages with are actively seeking to diversify their supply chains. These new business models are increasingly centered around ASEAN nations, South Asia, the Middle East, Africa, and Latin America.
Despite the rewiring of trade routes, Hung emphasized that trade remains a core driver of global growth and prosperity. He expressed hope that trade would continue to serve as a universal language connecting economies worldwide.
Hung also highlighted the need for diversified financial and currency infrastructure as trade becomes more multipolar. He pointed to the growing usage of the Chinese yuan (RMB) as a positive development, which could improve transaction quality, speed, and financing costs. However, he noted that a stronger offshore ecosystem is needed to support investment and hedging, not just conversion and remittance.
On services trade, Hung observed that while China currently runs a deficit, this gap is narrowing. The country is increasingly developing higher-end services in technology, artificial intelligence, software, and healthcare. He suggested that the next phase of services trade will be driven by knowledge-based offerings.