Coronavirus shipping delays force China’s small manufacturers to cancel orders as inventories pile up

Disruptions to sea and air freight caused by the coronavirus pandemic are delaying payment terms for Chinese factories

With cash tied up in inventory that cannot be shipped, smaller exporters are rejecting orders to avoid cash flow problems


He Huifeng in Guangdong, South China Morning Post (China)

8 Sep, 2021


Small and medium-sized Chinese export manufacturers are rejecting orders and scaling back production to avoid mounting inventory and cash flow problems caused by extended shipping times.


Disruptions to shipping – both sea and air – as a result of increased pandemic control measures, including lockdowns, are stretching out payment terms for Chinese factories.


Cash is being tied up in inventory that cannot be shipped quickly, forcing people like Betty Chen, who runs garment factories and wholesale shops in Guangzhou, to cancel orders to stay afloat...


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