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Turbulent Times report: Business leaders taking radical steps in an uncertain world
Turbulent Times Report: Hong Kong and global business leaders pausing key investments and passing on tariff costs to customers
December 2025
10 December, Hong Kong – A major wide-ranging new study released today by the Sandpiper Group (“Sandpiper”), the largest independent reputation management consultancy headquartered in Asia Pacific, and operating across the Middle East, finds that business leaders in Hong Kong and around the world are taking radical measures to avoid the risks and costs associated with trade tariffs, though those actions pose other threats to their reputation that they need to manage.
Many executives believe the geopolitical turbulence of 2025 is causing greater uncertainty now than when Sandpiper conducted a global survey of the same audience six months ago.
Based on a survey of 3,089 business leaders in 28 markets conducted at the time of the recent meeting in October between President Trump and President Xi, 91% say their organization has already or soon will pass on additional costs from tariffs to customers:
- 24% say they will pass on all tariff costs to customers – 16% in HK
- 42% will pass on most – 37% in HK
- 25% will pass on some – 36% in HK
Many also say they have reduced their investment exposure in both China and the US as a result of the tariffs:
- 37% have decreased their investment exposure in the US – 46% in HK
- 35% have reduced their investment exposure in China – 17% in HK
- 26% have reduced their investment exposure in the EU – 25% in HK
- 21% s have reduced their investment exposure elsewhere – 20% in HK
- 30% have put a halt on major investment decisions – 37% in HK
- 19% have imposed a hiring freeze – 25% in HK
There is pessimism about the next 12 months
Business leaders are pessimistic about the chances of a resolution between the US and China in the short term, and therefore do not expect business confidence to return in 2026.
Asked to rank the top five countries best placed to capture business confidence over the next twelve months, the most likely top performers are the US (with just 16%) and China (15%), with no other market scoring more than 6%.
Asked in the week before and the week of the meeting between Presidents Trump and Xi, more than half, 55%, think it will take at least six months for the two sides to reach any kind of sustainable trade deal, with another 5% believing they will never reach such an agreement.
This far more pessimistic than we asked similar questions back in April. Then, maybe optimistically, 67% of leaders forecast that the trade and tariff conflict would be resolved within six months, that is, by now.
As President Trump likes to say who he thinks has got the strongest cards in any negotiation, he may be disappointed that executives in general think they are evenly split with China. 46% think the US has the best cards, while 39% think China has them. However, the fact that 81% of US-based respondents think their government has the strongest hand, while 92% of those in China think their government has the best cards, may indicate why neither side seems in a rush to compromise.
Of those leaders based in Hong Kong, 54% say that China has the stronger cards against 27% saying the US.
Commenting on the survey results, Emma Smith, CEO of Sandpiper, said:
“It is worrying that so many Hong Kong-based and global business leaders feel they have to take such dramatic action to reduce their vulnerability to the geopolitical and technological upheavals of 2025, which they foresee will continue throughout 2026. Most appear pessimistic about their prospects in the short-, medium- and long-term future, and increasing numbers are worried about the impact of Artificial Intelligence on their firms. It is crucial that business leaders, and especially corporate affairs teams, manage their way through these turbulent times and find new sustainable footings for their firms.”
About the market research
This global survey was conducted at the time of the recent meeting in October between President Trump and President Xi, by Sandpiper Research and Insights. A total of 3,089 business leaders, owners, board members, C-suite, and director level with departmental responsibilities in 28 countries gave their views. They are split evenly between large firms (more than 1,500 staff), medium-sized enterprises (1,000 to 1,499) and small businesses (100 to 1,000). They are in a variety of sectors: business & professional services, education, natural resources, financial services, F&B, healthcare & wellness, tech, public sector, retail, travel & hospitality. Download the full report here.
The markets surveyed are: Canada, USA, Brazil, UK, France, Spain, Saudi Arabia, UAE, South Africa, Qatar, Netherlands, Germany, Switzerland, Italy, India, Indonesia, Thailand, Malaysia, Singapore, Mainland China, Japan, South Korea, Taiwan, Philippines, Hong Kong, Vietnam, Australia and New Zealand.
Sandpiper’s team is based across 13 markets in Asia Pacific and the Middle East in Auckland, Bangkok, Beijing, Dubai, Hong Kong, Kuala Lumpur, Melbourne, Perth, Shanghai, Singapore, Sydney, Taipei, and Tokyo, and supported by affiliates across 27 markets globally.
Sandpiper has been recognised with multiple awards, including Global Corporate Agency of the Year by PRovoke, and Asia Pacific Regional Agency of the Year by PRovoke, PRWeek, the PRCA, and Public Affairs Asia, as well as ESG and Sustainability Specialist Agency of the Year, Corporate and Financial Agency of the Year, and Specialist Agency of the Year for Sandpiper Research & Insights. We have been ranked among the top 10 fastest-growing agencies in Asia Pacific, the top 15 fastest-growing globally, and one of the top five creative agencies in Asia Pacific.
We continue to set new standards in reputation management, delivering strategic insights that transform communications into a critical business asset.
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