Chinese banking problems
Published: 27 Apr, 2022
Suppliers from both Europe and the U.S. are reporting that trading with China is becoming harder. With Shanghai almost closed, the centre of banking and commerce within China, it is causing a problem. Suppliers report that letters of credit and deposits are not being made due to bank closures, this is often putting contracts under pressure as they run the risk of being out of shipping date, undermining existing deals and prices. U.S. suppliers, by the very nature of the amount of material they ship, are most at risk. The port loading/unloading problems in China are escalating, again meaning that some contracts are arriving well after they are contracted to, even though they arrived within Chinese waters well in time. The longer the lockdown in Shanghai continues, the bigger the banking and payment problems will get, putting further pressure on hide prices.
Click here for subscriber access to the full report.