Home / Knowledge / News / 50 percent of all payment default cases from US
50 percent of all payment default cases from US
29
Oct '08
Data collated by Ministry of Commerce shows that amount of claims for credit insurance for exports to the United States came up to US $3 billion from January to May this year, which is nearly 3.3 percent of all exports to that country.

On basis of exports to the United States which totaled US $95.5 billion in the first five months; loss in payment should be over US $3 billion if calculated on the default claim rate of 3.3 percent.

"Bad debt rate in exports to the United States has increased by 2-3 times this year and these bad debts have been borne by Chinese enterprises.” said Han Jia Ping, Credit Management Department Director of International Trade and Economic Cooperation Research Institute of the Ministry of Commerce.

It is reported that most exports effected by Chinese enterprises are based on credit terms. Buyers in Europe and the United States generally make payment after 90 days of shipments, and some even extend it to 120-150 days.

But this year, due to recessionary trends many foreign buyers are facing cash flow problems due to which they often have postponed payments to 5-6 months which has Chinese enterprises hard pressed for working capital.

The province of Jiangsu has reported more than 320 claim cases from January to September, involving an amount of US $16 million, the amount which is four times more than that received last year. Among them, the largest arrear was experienced by an exporter in Jiangsu who laid claim to an amount of over US $14 million for shipments made to the United States.

Even from among the cases accepted by Chongqing Department of China export credit insurance company, more than half the cases were from the United States.

Fibre2fashion News Desk - China

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search