58% of Chinese supply chain execs to diversify sourcing: DP World

More than half of Chinese supply chain executives plan to increase the number of suppliers and diversify sourcing in 2026 as companies strengthen resilience, expand into new markets and accelerate investment in digital technologies, according to the DP World Global Trade Observatory – China Country Report 2026.

Based on a survey of 292 supply chain and logistics executives in China, the report found that 58% of respondents identified increasing suppliers to diversify sourcing as their top strategic priority for 2026, while the global average is at 51%. This was followed by near-shoring operations (38%), friend-shoring operations (36%) and increasing inventories (32%). In fact, only around a quarter of Chinese supply chain leaders plan to outsource operations or decrease inventories.

These findings indicate that Chinese companies are building more resilient supply chains by expanding supplier networks, creating additional sourcing options and increasing regional flexibility to respond to changing trade policies, tariffs and customer demand. The report notes that resilience has shifted from being a defensive measure to becoming a proactive growth strategy, with companies restructuring supply chains around regional and partner-country networks while continuing to invest in technology and market expansion.

The survey found that Chinese companies remain optimistic about trade despite recent geopolitical uncertainty. While 43% of respondents expect global trade growth to accelerate in 2026 and 50% expect it to remain at similar levels to 2025, only 42% described policy uncertainty as high, compared with a global average of 53%.

Chinese executives were also the most confident globally in their ability to navigate trade barriers. 35% of executives said changes in tariffs and non-tariff barriers would have a positive impact on their businesses, while only 26% anticipated a negative effect. According to the report, this confidence reflects China's ongoing diversification of export markets and its growing focus on South-South trade corridors, including ASEAN countries and Africa.

The report notes that direct exports to the United States now account for less than 3% of China's GDP, compared with more than 6% a decade ago, highlighting the country's gradual shift towards a broader export base. At the same time, executives acknowledged that recent disruptions in the Strait of Hormuz have added uncertainty to global supply chains, particularly as more than 30% of China's oil and liquefied natural gas imports transit through the corridor.

Technology emerged as the strongest driver of future growth. 50% of respondents identified deploying artificial intelligence (AI) as their leading business priority over the next one to three years, followed by digitalisation (44%), growing demand from new markets and consumers (43%), and new value chains (34%).

Chinese executives also highlighted policy priorities that would further strengthen trade competitiveness. Trade facilitation (40%) ranked highest, followed by free trade agreements (39%) and digitalisation and connectivity support (38%). The report noted that customs clearance remains the country's most significant operational bottleneck despite continued investment in smart customs programmes and digital border infrastructure.

Respondents also demonstrated greater confidence in access to trade finance than their global counterparts. Around 50% of Chinese executives said trade finance was readily available on reasonable terms, compared with a global average of 39%, providing exporters with additional flexibility to expand internationally.

The survey found that logistics executives viewed border and customs processing infrastructure (55%) as the highest priority for future investment, followed by ports and terminals (44%) and warehousing and logistics hubs (42%). In contrast, only 13% identified road infrastructure as a priority, reflecting China's comparatively mature domestic transport network.

Digital adoption across logistics operations also exceeded global averages in several areas. Warehousing and fulfilment was identified as the most fully digitalised function, followed by customs and cross-border clearance, while customer-facing services and supply chain visibility continued to improve.

Commenting on the findings, Glen Hilton, CEO and Managing Director, Asia Pacific, DP World, said, “China’s next trade advantage will come from resilience and adaptability, not just scale. Chinese companies are already diversifying suppliers, entering new corridors and investing in digital systems and AI. But that ambition creates the most value when companies can see their cargo, switch between routes, clear borders, manage documentation and fulfil reliably across markets.”

“What customers increasingly need is not a disconnected set of providers. They need an operating partner that can connect the physical and digital layers of trade – ports, terminals, freight forwarding, customs, warehousing, systems and last-mile execution. DP World is built to help make that complexity work at an international level, so businesses can keep moving even as routes, rules and demand change,” added Hilton.

DP World, which manages around 10% of global containerised trade, said the survey findings mirror the trends it is observing among customers in China across sectors including e-commerce, automotive, fashion and luxury, food and beverage, healthcare and technology. The company said customers are increasingly seeking integrated logistics solutions that combine freight forwarding, contract logistics, warehousing, customs support, ports, terminals and digital supply chain visibility to improve resilience and operational performance across international markets.