© Khunaspix Dreamstime.
Cash is king, but it is also in short supply as everyone tries to hoard what they have. The result is that suppliers are getting squeezed, particularly smaller producers in China who are often plagued by late payments and forced to reduce prices – leading to declining product quality and financially distressed suppliers. Employing supply chain finance methods in the Renminbi, could help both Chinese exporters, their foreign customers and the logistics providers serving both parties.