Entrepreneurs are concerned. Trade with China is dying

Coronavirus is becoming more widespread and has a negative impact on global markets. If the current collapse of the Chinese economy continues, this will affect the supply chain and many Polish companies will find themselves in a very difficult position.

As predicted by, among others Polish entrepreneurs, it can be assumed that due to a shortage of components within a month, the situation in many sectors of the economy will become very difficult. Currently, work is still underway on inventory, but trade with China is dying.

The situation on the Chinese components market is starting to get very bad, this applies in particular to electronics, some substances for pharmacy, parts for machine and automotive production, and even work clothing. This is due to the many closed Chinese factories, or – for sanitary reasons – operating at most one-third of their capacity. Things are not facilitated by congested Chinese ports where are ships loaded with containers, including unloaded ships on which they are European, including Polish goods, and those which were to depart with Chinese goods also to Poland.

Entrepreneurs who sent products with a short shelf life to China are in a particularly difficult situation. There is a risk that such products, which are not unloaded on time, may break down – often these extraordinary situations are not provided for under insurance coverage.

By the end of 2019, the main trade problem with China was the country’s trade war with the United States. When the parties reached initial agreement and the business community expected relief, the coronavirus appeared. The effect of these two phenomena is further slowdown in global trade exchange and deteriorating entrepreneurial moods.