China’s manufacturers feel the pain of Ukraine crisis as customers have ‘no desire to pay’
Manufacturers in China are starting to feel the pain of the unfolding crisis in Ukraine as financial sanctions placed on Russia have started to filter through to export customers.
Commerce Minister Wang Wentao said on Tuesday that China was hoping to
“promote our normal trade” with both Russia and Ukraine, with Beijing still attempting to walk the diplomatic tightrope between Moscow and Kyiv.
“My Ukrainian and Russian business has been directly impacted,” said Bob Yao, co-founder of a digital printing production company in Guangdong province.
“We lost contact with my Ukraine client. And another Russian customer sounded no desire to pay and let us deliver goods all at once because the rouble has been devalued.”
China is the largest trading partner of both Russia and Ukraine, but Yao said the impact of Russia’s invasion has even spread to customers in other regions.
“A customer in Central Asia informed us on Tuesday that he has decided to postpone payment and shipping plans for six containers, because of concerns over world affairs,” he added.
Manufacturers in the world’s factory, especially small and medium-sized enterprises in the industrial sector, have expressed pessimism about the future of the Commonwealth of Independent States (CIS) market.
The CIS was formed following the dissolution of the Soviet Union in 1991, with Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan and Ukraine full member states.
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China is the largest trading partner of both Russia and Ukraine, but sanctions from the US and its European allies have started to be felt by customers in both countries.
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