Citi’s China-US corridor thrives as mainland firms hedge risks amid trade turbulence
Despite US-China trade tensions, Citi reports a 44% revenue increase in its North America-China corridor as Chinese firms seek financial hedging and global expansion. These companies are shifting from low-cost manufacturing to exporting high-value technology and supply chain ecosystems.
Why it matters
This trend illustrates how multinational corporations and Chinese firms are adapting to geopolitical friction by deepening their integration into global financial and supply chain networks.
Escalating US-China trade friction has failed to dampen corporate activity between the two economies, with Citi reporting steady revenue growth on its North America-China corridor as Chinese companies aggressively deploy risk-hedging strategies to protect their global market share.
Instead of retreating from the US market, mainland Chinese firms had leaned heavily on global institutions to navigate financial friction and complex supply chains, Citi’s Greater China executives said at a media briefing in Hong Kong.
“Our revenue has not decreased – there has been growth,” the bank’s China CEO Zhang Wenjie said, noting a 44 per cent year-on-year revenue surge across the bank’s China-US corridor in the first half of the year.
Geopolitical headwinds boosted demand for cross-border financial services, he said.
Because North America remained a vital market, Chinese enterprises increasingly turned to international banks to execute foreign exchange hedging, manage trade exposure and reconfigure capital flows, Zhang said.
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