The corridors powering the next phase of global business

As global trade patterns, supply chains and investment flows continue to evolve, businesses are rethinking where and how they expand internationally. New trade corridors, AI-driven operations and a growing focus on resilience are reshaping the next phase of global growth.

• Global expansion remains strong, with businesses continuing to pursue growth despite rising uncertainty and shifting trade patterns.
• Resilience is now a core priority, with stability, flexibility and risk management increasingly outweighing cost considerations.
• AI and emerging trade corridors are reshaping growth opportunities, driving businesses to invest in technology, data and new international markets.

For decades, international expansion has followed a relatively standard playbook. Businesses identified large growth markets, built efficient supply chains, optimised for cost and scaled into regions where regulation, trade flows and customer demand were relatively stable.

Now, this playbook is being rewritten. From geopolitical tensions and tariff disputes to AI-driven business models, energy security concerns and shifting capital flows, the foundations that have traditionally underpinned globalisation are changing.

International ambition remains remarkably strong in the face of this change. In HSBC's latest Business of Expansion study 77% of internationally active businesses said they plan to expand into new overseas markets within the next two years, while nearly half (48%) say tariffs have actually accelerated their expansion plans rather than delayed them.

But the considerations and strategies behind those expansion plans are shifting fast.

As business leaders, economists and trade specialists at the recent HSBC London Banking Week set out: globalisation is not retreating. It is rewiring. And the question for business leaders is not whether to expand internationally, but where, how and with what level of resilience.

New trade corridors are emerging faster than many businesses realise

One of the strongest themes throughout London Banking Week was the emergence of new trade corridors.

Vivek Ramachandran, Global Head of GTS, HSBC, told delegates that businesses are witnessing “a fundamental shift” in global trade patterns, as companies respond to tariffs, geopolitical tensions and changing supply chain priorities.

Delegates heard how countries such as Vietnam, India and the UAE are becoming increasingly important nodes in global trade networks, while free trade agreements are creating new opportunities that many organisations are still failing to fully utilise.

At the same time, research from the Business of Expansion study shows that Asia Pacific has become a dominant destination for expansion, with 85% of businesses planning international growth targeting opportunities in the region. Singapore has emerged as one of the most attractive markets globally, acting as both a regional headquarters location and a gateway into Southeast Asia.

The UK remains deeply connected to this changing landscape. London Banking Week heard the US-UK corridor continues to be the largest driver of trade, investment and capital flows, while UK-India and China-UK connections continue to strengthen.

However, another key message was that businesses are increasingly adopting a multi-directional approach to growth rather than relying on a single market or region.

The result is a world where growth is becoming more distributed, and successful businesses are broadening their view of where future opportunities may emerge.

Expansion readiness is no longer just about market entry

Historically, expansion readiness has often been viewed through a relatively narrow lens: securing funding, establishing local operations and finding customers.

Today, readiness is much broader. Businesses entering new markets must assess political stability, regulatory complexity, supply chain resilience, talent availability, technology infrastructure and operational scalability before making investment decisions.

When it comes to selecting where to expand, businesses are looking for the right combination of stability and opportunity. According to the Business of Expansion study, economic stability is the number one attraction for businesses when evaluating new markets, selected as a top three factor by 25% of respondents. In an unpredictable world, this underscores a focus on risk management as businesses look to balance growth and resilience.

Notably, cost considerations and tax incentives rank lower in the decision matrix, suggesting that businesses are prioritising long-term market fundamentals over short-term financial incentives.

This reflects a wider shift in mindset. Stuart Tait, Head of Commercial Banking, HSBC UK, told London Banking Week that businesses are increasingly looking for locations where “demand and stability and scale all line up”. Expansion is no longer purely about pursuing growth, he added, but also about building resilience.

The most expansion-ready organisations are therefore developing capabilities that allow them to enter markets quickly while maintaining visibility over liquidity, risk, compliance and operations. They are treating international growth as a strategic capability rather than a one-off project.

“Going global is really exciting, but the hard part is the complexity of it,” Tait adds. “If every new market needs new documents and new controls and approvals, the growth can slow down fast. So, the best companies get ahead of that by designing the complexity out. And first, they build a global playbook. They have standard policies, standard controls, and standard documents.

“All of that's done by default. Localise only what you must. And second, set up proactive governance,” he adds. “Scan the horizon for change, engage regulators early, and be clear on who decides what. Global decision-making versus local decision-making.

“And third, use data and automation. One source of truth, fewer handoffs, faster approvals, and importantly, better visibility on your cash, foreign exchange, and settlement exposures. Do these three things and complexity stops being a firefight. You build a platform that you can scale market by market.”

Supply chains are being redesigned around resilience

Perhaps the most significant structural shift discussed throughout London Banking Week was the changing nature of global supply chains.

For decades, supply chains were optimised around one overriding objective: minimising cost. According to Ramachandran, that era is ending.

“Cost minimisation cannot be the overarching concern,” he told delegates, as companies increasingly balance efficiency against resilience, security and geopolitical considerations.

Rather than becoming shorter or more localised, supply chains are becoming more fragmented. Strategic industries such as semiconductors, electric vehicles and energy infrastructure are increasingly sourcing from geopolitical allies and establishing production closer to home. At the same time, less strategic product categories continue to pursue lower-cost sourcing globally.

The outcome is a more complex network of suppliers, partners and manufacturing locations, with nearshoring, friendshoring and ‘China Plus One’ strategies – whereby companies diversify their supply chains away from solely China by adding another supplier country – reshaping sourcing decisions and trade flows.

Businesses are deliberately building optionality into their supply chains. That may increase costs in the short term, but it provides greater protection against disruption.

This is particularly important as energy security becomes a growing consideration. Multiple speakers at HSBC’s recent event highlighted the impact of recent disruptions around the Strait of Hormuz, noting that energy, logistics and critical mineral supply chains are increasingly intertwined with geopolitical developments.

For business leaders, resilience is no longer a defensive strategy. It is becoming a competitive advantage.

Capital is flowing towards the industries shaping the future

Another factor in the changing shape of trade corridors is a shift we are seeing in investment corridors – as we witness a clear shift in where global capital is being deployed.

Historically, foreign direct investment was dominated by manufacturing, industrial production and automotive sectors. Today, investment is increasingly concentrated around what Ramachandran described as “future-shaping industries” – particularly AI, robotics, digital infrastructure and the energy systems required to support them.

This trend is visible across regions. Asian economies are benefiting from AI-driven demand for semiconductors and computing infrastructure. Countries such as Taiwan and South Korea have seen substantial economic benefits from the AI hardware boom, while governments globally are investing heavily in data centres, digital infrastructure and energy generation to support future growth.

The implication for expanding businesses is significant. Future growth opportunities are increasingly linked to ecosystems rather than individual markets. Access to talent, innovation clusters, digital infrastructure and capital is becoming just as important as access to customers.

AI is redefining international operations

While AI is often discussed in terms of productivity, it is clear AI is changing what it means to manage an international business – with many optimistic about its impact moving forward.

Historically, operating across multiple markets required large teams, fragmented systems and significant manual effort. But that’s changing amid the rapid rise of AI, automation tools and technological developments in general.

Manish Kohli, Head of Global Payments Solutions, HSBC, told London Banking Week that technology is “supercharging” rather than disrupting payments and treasury operations in particular. Businesses are increasingly seeking real-time data, APIs, automation and AI-driven forecasting to gain visibility over liquidity, risk and performance across global operations – with technology rapidly evolving to meet these needs.

However, organisations need to think beyond simply deploying these tools into their existing operations and instead focus on developing an “AI-native mindset”. This requires rethinking workflows, data management, customer journeys and decision-making processes from the ground up.

Importantly, AI is also becoming a core component of expansion planning itself. HSBC's Business of Expansion study found that 41% of businesses now use AI tools as a primary source of information when researching new markets, while many organisations rely on multiple AI platforms when evaluating potential partners and expansion opportunities.

Friction points have not disappeared

Despite the clear opportunities, expansion can remain challenging for some businesses. According to the Business of Expansion study, economic uncertainty, regulatory complexity and political factors remain the most significant barriers to international growth. Financial complexity, banking operations and cross-border visibility also continue to create friction for organisations operating across multiple jurisdictions.

As Noor Adhami, Global Head of Network Banking, HSBC, told delegates at London Banking Week, uncertainty is no longer a temporary disruption; it has become a structural feature of the international business environment.

As a result, businesses must learn to operate successfully within uncertainty rather than waiting for stability to return. This means building stronger risk-management frameworks, developing more flexible operating models and investing in technologies that provide real-time visibility across markets.

It also means understanding that expansion today is often as much about managing complexity as it is about capturing opportunity.

The next phase of global business will reward preparedness

Despite the current uncertain outlook and continuing volatility, businesses are still expanding. Capital is still moving. Trade continues to grow. But the rules governing where opportunity exists and how organisations capture it are changing.

The next decade will be shaped by new trade corridors, fragmented supply chains, AI-enabled operations, regional economic blocs and the growing importance of resilience alongside growth.

For business leaders, success will depend on developing a broader definition of expansion readiness. It will require understanding not only where demand exists, but where talent, infrastructure, capital, technology and stability intersect.

The organisations that succeed will be those that recognise that international expansion is no longer simply about entering new markets. It is about building the capability to operate confidently across an increasingly connected, complex and rapidly evolving global economy.