The Chinese mainland is cementing its position as a pivotal player in the reshaping of global supply chains, according to Standard Chartered's latest report released on Tuesday.

A survey of 1,200 C-suite and senior executives across 17 major markets found that multinational corporations are increasingly turning to the Chinese mainland as they recalibrate their supply chains in response to shifting geopolitical and economic dynamics.

While concerns over trade tariffs remain high, corporations identified emerging technologies and global economic growth as equally important factors shaping the future of global trade, with 53 percent ranking both among their top considerations. More than six in 10 corporations expect costs to rise by five to 14 percent, due to macroeconomic and geopolitical developments. To offset these pressures, companies are adopting multi-pronged strategies — including geographical realignment of supply chains, adjustments to treasury management strategies, and increased digitalization efforts.

The report highlights the Chinese mainland's rising importance in this transition. Among African corporations surveyed in Kenya and Nigeria, more than half plan to expand trade with China. Roughly half of Indian respondents expect to increase reliance on the mainland, while about 40 percent of US and UK companies intend to maintain their current levels of trade activities with the Chinese mainland.

Domestically, mainland industry is shifting from labor-intensive manufacturing, toward higher value-added production powered by artificial intelligence, robotics, and renewable energy. The shift positions the Chinese mainland higher up on the global value chain, while stimulating domestic demand.

"As global supply chains are being reshaped, Chinese corporations are playing a greater role as innovators and enablers," Louise Zhang, head of transaction banking at Standard Chartered Bank (China) Limited, said. "Their financial needs are evolving too, with increasing demand for flexible cross-border liquidity, efficient multi-currency management, and global visibility with compliance."

Standard Chartered is committed to working with corporations to build supply chain ecosystems that are more localized, regionalized, and digitalized, and supported by innovative cross-border financial solutions, Zhang said.

Sunil Kaushal, the bank's global co-head of corporate & investment banking and CEO for ASEAN and South Asia, noted that while trade fragmentation could weigh on growth in the near term, the combination of technological advancement and rising prosperity in developing economies, continues to make global trade opportunities compelling.

Standard Chartered is witnessing strong client demand to upgrade global trade and supply chain ecosystems, Kaushal said, with many accelerating the use of smart manufacturing and AI to boost efficiency and counter rising costs.