SAN FRANCISCO – Cross border and domestic trade activity in China fell by more than half during a single week in February according to new data from Tradeshift.
Analysis of business to business payment data in the region shows the volume of Chinese domestic and international transactions processed across its network fell by 17 percent between January and February as factory closures aimed at stopping the spread of the coronavirus amplified traditionally slow trading conditions around Chinese New Year.
Week on week analysis reveals overall trade activity in the region fell by a remarkable 56 percent in the week commencing February 16th following a period of steady decline throughout January. Domestic supply chains were particularly badly affected, with orders placed between local businesses falling by 60 percent. The number of transactions between Chinese businesses and international firms dropped by 50 percent during the same period.
“The sheer speed at which the Coronavirus took hold in China has sent a shockwave through the delicate ecosystem of complex supply chains spanning the globe,” said Christian Lanng, CEO of Tradeshift.
“Inflexibility does not deal well with uncertainty, and as the virus threatens to become a pandemic, many businesses are finding that their inability to identify and connect with alternative suppliers quickly enough is having a tangible impact on production. We are actively working with a number of our customers to help them build contingency into their supply chains through our network.”