General

It continued to snow heavily in Bursa on February 8.

"Now, Türkiye is on the alert, and saving people has become the top priority. The government lowers the flag at half mast, and factories and enterprises are also deeply affected. Pray that the earthquake will not happen again!"

On February 7, Mei Lei, a "new Ningbo native" engaged in foreign trade, was far away in Bursa, an important industrial town in Türkiye. A month ago, she accompanied her Türkiye boyfriend and Ningbo overseas broadcasting officer Erdem back to her hometown, busy visiting customers and looking for business opportunities. The sudden earthquake made her heartstrings tense immediately.

In just one day, two 7.8 magnitude earthquakes occurred in southern Türkiye, which has killed nearly 7000 people in the country, making it the largest earthquake disaster in the world since this year.

The heavy snow, the earth shaking, the houses collapsing... Mei Lei and Erdem didn't feel the shock because they were far from the epicenter, but the scenes around them were enough to make people move.

"I'm too worried to eat dinner"

Mei Lei and Erdem work in Ningbo Meibo Group. They took the opportunity of the release of the "New Ten Rules" to return to Türkiye after three years. Every morning, they set out from Bursa at less than 5 o'clock, went straight to factories all over the country, and then fed back the information to their domestic colleagues. They ran nearly 30 customers in a month, harvesting the "order rain".

This "busy and happy" life was soon affected by the sudden earthquake. At 4:17 am on February 6 local time, a 7.8 magnitude earthquake hit southeast Türkiye. Fortunately, the western city of Bursa is about 800 kilometers away from the epicenter of the earthquake. Mei Lei just felt that she had not slept well all night. She didn't know the natural disaster until she woke up in the morning.

"I read the news, Türkiye earthquake, how are you?" Mei Lei's WeChat pop-up more than 100 messages from domestic friends, making her feel warm in foreign countries. The first time she saw heavy snow in Türkiye, she couldn't help sending a circle of friends to wish peace.

Unexpectedly, Türkiye had a swarm earthquake. In the evening of the same day, Mei Lei was talking with her friend about "telephone porridge". She glanced at the mobile phone Erdem handed over, and then learned that another 7.8 magnitude earthquake had occurred. She immediately hit the "crack" expression on WeChat. She and Erdem greet customers all over the country one by one, and they are relieved to learn that they are all right.

"All the channels on the TV are broadcasting the news of the earthquake. I saw people in thin clothes being frozen in the ice and snow, and more people were buried in the ruins. Even in the aftershock, they watched their relatives leave, so sad that they could not eat dinner. Fortunately, our customers in the east have moved to the safety zone," Mei Lei said.

On that day, the WeChat group of Chinese in Türkiye where Mei Lei was also receiving mutual help news. A mother in the vicinity of the earthquake area quickly fled downstairs with her child and quilt in her arms; Bricks and tiles fell off the wall of a relative; Some people opened donation accounts, donated clothes and tents for the disaster area, volunteered to volunteer in Mersin, and forwarded the emergency contact number of the Chinese Embassy in Türkiye

As far as Mei Lei knows, most Chinese in Türkiye live in Istanbul, Kapadocci, Ankara and other big cities, which is a certain distance from the disaster area, and she did not see other Ningbo people in the group. When she saw four members of Ningbo Blue Sky Rescue Team set out to support Türkiye, she felt the power of "disaster without love" again.

At present, flags at half mast are everywhere in Türkiye, and the streets of Bursa are full of vehicles carrying relief supplies. People regard the life safety of their compatriots as the first priority, and large-scale events are suspended and economic and trade activities are suspended. Mei Lei and Erdem are looking forward to the early relief of the merchants who are close to the earthquake area, the plant collapses and the equipment is damaged.

How does the "butterfly effect" affect international trade?

Türkiye, located at the "crossroads" of Eurasia, is an emerging market country with developed industries, and has many business contacts with Ningbo, the "city of trillions of foreign trade". When Türkiye gets through the disaster, will the "butterfly effect" brought by the earthquake have an impact on international trade?

According to the data of Ningbo Municipal Bureau of Commerce, in 2022, Ningbo's international trade import and export volume to Türkiye will reach 12.19 billion yuan, an increase of 19.2% year on year, accounting for almost 1% of Ningbo's international trade import and export volume in the same period. The main export products are basic organic chemicals, electrical equipment, general mechanical equipment, household appliances, etc; The main imported products are copper, dried and fresh fruits and nuts, and refined oil.

It is understood that the eastern region where the earthquake occurred is densely populated and is famous for agriculture and industry. It grows wheat, barley, fruits and vegetables and produces textiles, chemicals and auto parts. But this is not a key area for economic and trade exchanges between China and Türkiye.

According to the Chinese Chamber of Commerce and Industry in Türkiye, the number of Zhejiang businessmen in Türkiye has dropped sharply from nearly 10000 before the epidemic to 12000 due to the economic situation. Shen Qinwei, an entrepreneur from Ningbo and head of koko production and manufacturing company, has set up a factory in Arles, Türkiye. The company is about 900 kilometers away from the epicenter of the earthquake, and the employees are safe.

He said in an interview: "Since the earthquake area is close to Syria, mainly Turks and Arabs live together, and there is war risk. Therefore, few Chinese enterprises do business there. New Hope Group has built factories on the edge of the earthquake area, but fortunately it was not damaged in the earthquake."

It was also reported that after the earthquake, some containers at the port of Iskenderun in southeast Türkiye collapsed and a fire lasted about 27 hours. The reporter found that there is no direct route between Shanghai Port, Ningbo Zhoushan Port and the port, and that the port mainly imports crude oil and food industrial products. It is speculated that few Ningbo enterprises' goods are damaged.

Although the direct impact is limited, the earthquake has caused heavy damage to Türkiye's economy and will bring risks to subsequent economic and trade activities. On February 7, Türkiye's stock market fell sharply, triggering the circuit breaker twice. The exchange rate of the dollar against Türkiye's currency lira hit a new high of 18.85 lira per dollar on February 6. In addition, as Türkiye's general election approaches, the changing political situation will pose a severe test to bilateral trade.

"When I heard the news of the earthquake, I immediately greeted a customer in Türkiye and learned that he was safe in Istanbul." Manager Chu of Ningbo Zhongji Huitong Comprehensive Foreign Trade Service Platform told reporters, "I remember that in 2018, Türkiye had a currency crisis, and some customers were almost unable to pay the balance. I hope everything goes well this year."

The relevant person in charge of China Sinosure Ningbo Branch pointed out that under the current background of the appreciation of the US dollar, the exchange rate of the lira against the US dollar is likely to fall sharply. The sudden earthquake will not only affect the normal operation of some buyers, endanger personal and property safety, but also may cause partial blockage of the supply chain and further increase the risk of currency depreciation and inflation.

The person in charge suggested that relevant Ningbo enterprises should keep close communication with the buyer and give necessary care and humanitarian assistance. At the same time, strengthen the tracking of foreign exchange collection, properly handle the buyer's demand for delayed payment, and actively take advantage of policy financial instruments such as international trade export credit insurance to prevent risks.

In addition, the person in charge suggested that the enterprise should strengthen the assessment of overseas buyer's credit risk, and do a good job of buyer screening through the overseas credit investigation service of China Sinosure Ningbo Branch, especially focusing on the prevention of trade fraud risk.