Wenzhou City Government investigates on key industries and foreign trade enterprises affected by the war between Russia and Ukraine, and takes measures to help reduce the losses of enterprises, such as holding online trade fairs, expanding market with the Regional Comprehensive Economic Partnership, , and monitoring the conflict to avoid further losses.
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.
