Thursday, December 23, 2010

Overseas debt haunt Chinese exports

At present, China's export-oriented enterprises are facing multiple challenges: to escalating trade barriers to the increased difficulty of exports, cotton, and other raw materials prices continue to rise to exert pressure that enterprises, and the Renminbi exchange rate fluctuations not only compression Enterprise profit space, also makes it difficult to recover the overseas account issues have become increasingly prominent.

"RMB appreciation will lead to more and more Chinese export enterprises, especially small and medium-sized exporters facing serious overseas arrears. Moreover, overseas due to each of the 15 percent growth. "United States ' programe company SGA President and Chief Executive Officer, Sharon · Gilman (SharonGillman) told reporters. With 40 years ' experience of SGA programe in 1997 after entering Hong Kong market, open an Office in mainland China. As China Chamber of international commerce's business account management team members, SGA continuous 13 years continuing concern about China's exporters abroad arrears.

Have the data show that the Chinese exporters about 30% generally faced with overseas accounts cannot be recovered. Including apparel, textile exporters to bear the brunt, electronic products and machinery equipment industry is also quite common. As of the end of 2009, the Chinese exporters have more than 1000 billion dollars of international debt outstanding, this value is equivalent to Zhejiang Province exports in 2009.

Prior to this, the just-concluded during the trade fair, many exporters pressure signed an agreement with overseas merchants. Sharon · Gilman recommends, in the current exchange rate is still difficult to predict, the Chinese exporter and foreign merchants to conduct transactions, to try to avoid possible risk factors, in the event of an overseas credit problems, you should abide by Chinese and importing countries under the premise of the legal framework, reasonable and in accordance with law, debt recovery.

This reporter has learned that usually export Enterprise encountered the issue of credit recovery in two cases, a debtor is experiencing a financial crisis, the debtor has not encountered malicious arrears crisis but still, that is good at owe to the account debtor "professional." As exporters are often not familiar with local laws, as well as language arrears, recovery is very difficult. Sharon · Gilman noted that the first case, the specialized agencies usually will first select the friendly negotiations about a friendly agreement to achieve partial repayment, but in the second case, you will select in local start legal proceedings.

Then, in the complex and ever-changing international trade process, the Chinese small and medium-sized exporters should be how to avoid risks? Sharon · Gilman cautioned that in dealing with each other, small and medium-sized exporters signed contract must pay attention to details, such as indicated in the contract, the importer receives the goods within a period shall be the date the goods have arrived at, as well as quality problems to exporters by notice in writing. Once the file, this will be a strong evidence. Second, the exporter once in overseas accounts, must be resolved as soon as possible, cannot delay time. According to SGA's statistics, the date of payment in the contract 3 months, to recover a higher success rate of accounts receivable, in 80%-85%. If more than 6 months, the success rate of only 50%-55%.

This reporter has learned that ' programe in developed countries is a common industry in China's development has only just begun. In developed countries, crediteyes strict legal restrictions as protected, not only can save billing time and maintain relationships with international customers.

Department of Commerce's international trade and economic cooperation between the Institute of credit management Director Hanjiaping has pointed out that China's export Enterprise for contract and contract skills are weak, in crisis, enterprises of bad debts, debts, died a substantial rise in the ratio of accounts. Since over half of all Chinese enterprises will credit sales as the main trade mode, in China's huge support of total trade, China will become the world's largest commercial programe market.

"China is a very large business market, the programe of interest is not only how much profit it brings, but more importantly, we see a change in the Chinese exporters, the concept of international trade, which will contribute to the transformation of business model. "Sharon · Gilman said. Although it has long been concerned and involved in the Chinese market, but Sharon · Gilman is currently in China's business development speed is still not satisfied, "future, China Merchants programe market will usher in a new era. ”

As regards the charges, Sharon · Gilman said, SGA "is not successful, do not pay" principle. In the friendly consultations, collect all the necessary amount of 15% of the costs of participation in litigation lawyer, receive 25% of all debt. (Editors: Jia Lu Jing)

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