Current Situation of Supply Chain Finance in China

With the deepening division of labor, globalization has become an important feature of the world's economic development, and the various parts of the supply chain are scattered around the globe. However, due to the interdependence of all parties along the supply chain, when a global event such as COVID-19 breaks out, economic risks will be transmitted through the supply chain to the world. Although China's economy is not highly dependent on foreign countries, the outbreak of the epidemic has caused a severe blow to the import and export business of many small and medium-sized trading companies, which are facing serious liquidity problems. Supply chain finance is a new type of financing tool. The development of supply chain finance can guide funds to better serve the real economy and become an important approach to solve the financing problems of small and medium-sized enterprises, and also become one of the important manifestations of the development of inclusive finance. Through multidimensional access to all types of information, risks are kept to a minimum, thus increasing the possibility for companies in the chain to obtain financing in the financial markets.