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

Indian govt approves special package for leather, footwear

Textiles | On 16th Dec 2017

Indian govt approves special package for leather, footwear

The Union Cabinet chaired by PM Narendra Modi has approved a special...

EU parliament resolution calls for Cambodia sanctions

Apparel/Garments | On 16th Dec 2017

EU parliament resolution calls for Cambodia sanctions

Following the ongoing crackdown in Cambodia on the opposition and...

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Interviews View All

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Robert Brunner
Devereux

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

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search