Montreal-based company Sinobec Group, which specialized in aluminum trading, has declared bankruptcy, naming the ongoing U.S.–China trade war as a key factor in its financial downfall, reports Baltimore Chronicle with reference to Bloomberg.
In its official statement, the company pointed to intensified tariff policies and restrictions imposed as part of the global trade conflict, which destabilized supply chains, reduced import volumes, and caused substantial financial losses. Sinobec Group also reported suffering from secondary sanctions that complicated its partnerships with Chinese suppliers—seriously affecting the company’s logistics and procurement processes.
Sinobec Group filed for creditor protection under Canadian bankruptcy law. The company stated it had tried to adapt to shifting market conditions over recent years through restructuring and internal optimization, but the prolonged trade crisis and geopolitical instability rendered continued operations unsustainable.
At the time of its shutdown, Sinobec Group was serving over 100 clients across North America, including major industrial firms. The company also conducted import-export operations with several Asian countries. Its assets will now be transferred to an external administrator, who will assess possibilities for partial debt repayment to creditors.
Earlier we wrote that oil prices climb on hopes of US-China trade easing.