Businesses trading with China warned
Australian businesses trading with China have been warned that the number of non-payments from Chinese businesses is on the increase.
Credit risk insurer Coface’s annual survey of corporate credit risk management in China shows non-payments have increased as a percentage of business, and current market volatility could see poorer payment performance impacting as soon as this year.
It says small and medium-sized enterprises are particularly vulnerable, but larger exporters are also at risk when trading with “relatively unknown” customers in a rapidly developing market.
Coface has urged the Federal Government to consider a free trade arrangement with China – which is now Australia’s largest trading partner with revenues worth $58 billion – to cater for effective debt management.
Credit risk insurer Coface’s annual survey of corporate credit risk management in China shows non-payments have increased as a percentage of business, and current market volatility could see poorer payment performance impacting as soon as this year.
It says small and medium-sized enterprises are particularly vulnerable, but larger exporters are also at risk when trading with “relatively unknown” customers in a rapidly developing market.
Coface has urged the Federal Government to consider a free trade arrangement with China – which is now Australia’s largest trading partner with revenues worth $58 billion – to cater for effective debt management.