Chinese Firms Expand in GCC Amid US Trade Tensions

Chinese and Hong Kong companies are increasingly focusing on the Gulf Cooperation Council (GCC) region to mitigate risks from intensifying US-China trade tensions and to explore new market opportunities. NEXX Global, a Hong Kong-based AI-driven logistics startup backed by CK Asset Holdings, is forming partnerships with Qatari and Hong Kong logistics firms to establish a regional logistics hub in Doha, aiming to serve all six GCC states and potentially expand into pharmaceuticals and cold-chain logistics. This move is part of a broader Hong Kong delegation led by Chief Executive John Lee to strengthen commercial ties with Qatar and Kuwait, where bilateral trade has significantly increased. Meanwhile, Chinese trade engagement with Gulf countries includes currency swap agreements aimed at diversifying payment systems, though the US may pressure these countries to reduce yuan usage in trade. Globally, merchants continue to seek opportunities in China despite tariff tensions, adapting their sourcing and markets, with some pivoting from the US to Europe and other regions. Chinese manufacturers remain cautious following a US tariff truce, balancing expansion efforts and market risks amid ongoing trade policy uncertainties.