This was a slightly different call on China. Instead of getting into the nuts and bolts of how you make your cross border cash pooling work, the aim was to get feedback on the current business situation, and how participants find the operating environment is evolving in the light of COVID and increasing geopolitical tensions.
Overall, there was no sign of a significant impact coming from trade tensions. Many companies are diversifying their sourcing and manufacturing footprints to increase resilience, but this is due to COVID and usual prudence, as much as political tensions.
COVID has resulted in travel to the country being suspended. This has aggravated the communications challenges which already existed – but the general view is that this is life, and must be accepted and worked on. Several participants said they never expect to be allowed to travel again – so Zoom skills will be essential going forward.
Logistics are a challenge in China, just as they are everywhere else, simply due to the shortage of vessels and vehicles. One correspondent said this is causing delivery deadlines to be missed, which is having a knock-on impact on payment timeliness and customer credit. In turn, this raised the issue of credit insurance, which was proving difficult due to a...please sign in to continue reading
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