Money tight despite China growth
Payment behaviour in China has deteriorated as a result of the global economic downturn, according to a report released by international credit agency Coface yesterday.
According to the survey results, more than 90 percent of respondents revealed problems with overdue payments, and 25 percent of respondents reported that their clients suffer from tight liquidity, a figure triple the 8.3 percent of companies encountering the same situation in the previous, survey.
The report also warned about doing business with small businesses and private companies in China: “More than 70 percent of companies interviewed perceive private companies as the riskiest types of corporations to do business with in China.”
And while the long-term outlook looked good, Coface advised that Chinese companies would “continue to face difficulties in the near-term”.
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