China's foreign trade is facing challenges as small and medium-sized businesses in its supply chains struggle with financial difficulties amid trade restrictions, a lack of raw materials and delayed payments during a coronavirus outbreak, the Ministry of Commerce said on Thursday (27.02.2020).
A survey by the ministry showed that more than 90% of about 7,000 companies engaged in foreign trade faced delays in shipments and payments due to the outbreak., the ministry told reporters in an online briefing.
Many companies faced significant risks of cancelled orders and refusals in product delivery and payment, said Li Xingqian, director of the ministry's foreign trade department, calling for "urgently needed" export credit insurance for them.
«The ministry will introduce further assistance measures in a timely manner"Li added, without specifying a time frame.
But there has been no major shift of supply chains or manufacturing outside China, ministry officials said, adding that some foreign companies continued to invest, betting on the long-term prospects of the Chinese market.
Problems faced by foreign companies in resuming work after travel and movement restrictions to curb the virus will soon be resolved as Beijing guides major industries to resume production, ministry official Zong Changqing said.
«The impact of the coronavirus outbreak on supply and industrial chains is temporary», added Zong, director of the ministry's foreign investment department.
"China's important status in the global supply and industrial chain will not change because of that."
China trade faces challenges as small businesses struggle with coronavirus impact.
Source: Reuters
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