Shandong Sunrise Group, a major soybean importer that was, for years, China’s 500th biggest company, has become the first Chinese firm to file for bankruptcy as the Sino-American trade war heats up.
The cross-Pacific battle was the last straw for the company owned by Shao Zhongyi, once the richest man in Shandong province according to the Nihon Keizai Shinbun newspaper.
The Japanese news outlet said Sunrise Group was hit by a double whammy this year: the rising price of crude oil, and more recently, the rising price of imported soybeans as a result of the ongoing trade war. It had previously been suffering from falling demand for pig feed.
Last week, Sunrise filed for bankruptcy with a court in the county of Juxian in Shandong after failing to repay its debts.
The company’s collapse shocked many as Shao Zhongyi had built his soybean empire into the largest private-run soybean enterprise in China in only two years.
First started as a plastics company in 1994, Shao founded Sunrise Group in 2003 as a petrochemical company. In 2006, he was at the center of a vegetable oil sector consolidation and stepped into the soybean business.
For seven consecutive years, it was China’s 500th largest private enterprise. In 2006, Shao himself was the richest man in Shandong, and was ranked the 230th richest man in China by Forbes; his company had a turnover of US$11.1 billion.
But latterly, Sunrise faced capital shortages and sought local government help with short-term loans to pay staff. In 2017 it was sued by local finance-leasing companies. Court proceedings exposed the company’s tight financial situation, leading to its demise.
Any comments from the fans of China out there?
They are waiting for commands from their bosses.
All Phil vacations just got cancelled.
ok sir
Can he import soybeans from Brazil instaed fron US….just an excuse
The company was already in trouble in 2017. Nothing to do with the implementation of tariffs in 2018.
Exactly. The tarrifs have only been in effect for a few weeks, hardly enough time for them to have had any effect what so ever. Mind you having said that the price of American fruit just went down a lot here in Hong Kong, which probably means loads more people coming down to shop.
The title said it all: THE 500th, NOT 500. LOL… The anti-China trolls must have gone orgy too early…
U r very naive to belive the story. He let go off his company so that need not have to repay back his loan. All his assets n cash have already taken out hiding elsewhere.
China’s challenge for tit-for-tat against USA for triggering trade war is rhetoric . China sulks to equate its economic power with USA. According to Mr Gary Hufbaucer, Senior Fellow at Peterson Institute for International Economics in Washington, China is to loose more than USA , because China is more dependent on exports to USA than vice-versa and USA is in a better position to find alternative market than in China. The first casualty of Shandog Sunrise Group pitched for many more to follow suit.
I hope China goes back to Mao Era.. good for them..
WHAT DO YOU WANT TO KNOW? STOP SNIFFING SHABU SO YOU CAN UNDERSTAND THE STORY….STUPID!
The company was dead long ago. Taking loans to pay staff. Tariff had the minimum contribution to its death. It’s like saying the rose on the grave is the murderer
Toto Ian you mean pinoy mother sell their children to foreign men eh?
Anthony M. Manzanero , ooo the world thankful to pinay maid or else world will die without them . LOL, self flattery only in lazy pinoyland
Probably, this is only an excuse and escape from creditors for debts incurred long before the trade war.
Why not russia?
What’s next for China?
This fight is far from over. There will be casualties in the US as well before this is over. Trump is trying to stop China from becoming the no. 1 economy in the world. His tariff agenda will backfire soon enough. Mind you, I’m a Trump fan but this is just infantile of him.
US farmer is bankrupt too ,it is funny.
US farmer is bankrupt too ,it is funny.
Look jealous.
Look jealous.
Brazil doesnt have the technology that the US have in order to mass produce soy beans.
Brazil doesnt have the technology that the US have in order to mass produce soy beans.