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 Footwear from Wenzhou to Russia-Ukraine affects by the conflict

Footwear from Wenzhou to Russia-Ukraine affects by the conflict

2022-03-23

Source:中国皮革协会

Author:编译:冉福林

Russia-Ukraine conflict affects the foreign trade and payment between China and Russia, as well as Ukraine, which has caused huge concern of the government of Wenzhou city.

For instance, Baisu is one of shoemaking Company in Wenzhou city and focused on production of hiking shoes that are popular in Russia and Ukraine with exported value of 10 million yuan last year. In 2022 Baisu Footwear extended its production by Updating automatic production to meet their increasing demand, but the footwear order from Ukraine of 2 million yuan suspended due to we can’t reach our Ukraine client, fortunately, our Russia client sent us good news that we can make and ship footwear normally. But we still face the challenges of logistics, exchange rate and payment, said Weng Shizhong, the General Manager of Baisu Footwear Company.

About 50.2% of foreign trade enterprises in Wenzhou city said that the delay or cancellation of orders was the main difficulty affecting the export of their products, 10% drop of their export in the first quarter. Another company of Ruibao said order from Russia dropped by 25%, as their orders Cancelled or suspended by Russia client.

The city government made the investigations on key industries and foreign trade enterprises affected by the situation in Russia and Ukraine, and immediately took measures to help reduce the losses of enterprises, such as holding online trade fairs, expanding market with RCEP, and informing of trend in Russia and Ukraine to avoid further losses.

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