Foreign Trade Buyers Frequently Repulse Debt Crisis In Europe And America Hurt Smes

A seven or eight year old German customer who has never been in arrears of money in recent years has suddenly applied for it in the near future.

European and American buyers are frequently in danger.

Last Friday, the Xiamen letter insurance company and the Xiamen foreign economic and Trade Enterprises Association held a lecture to analyze and prospect the risks of European and American markets under the debt crisis.

The information provided by China's Credit Insurance Corporation shows that the risk of European and American markets has been on the rise in the first three quarters of this year, especially in many industries, such as photovoltaic, electronics, steel, textile, automobile, light industry, shipbuilding and so on.

A business in Xiamen has encountered such problems.

The company agreed to a $100 million export with a European buyer. However, people are not calculating. In this round of European and American debt crisis, the buyer refused to pay the goods on the pretext of product quality as a result of its continuous deterioration in its business status.

The Xiamen company reported losses of $5 million and faced great financial pressure.

"According to past experience, buyers from European and American countries such as Germany and Holland have better overall qualifications. However, influenced by the overall economic environment, the probability of some European and American old buyers is rising now."

According to Huang Zhijing, head of Xiamen's credit insurance business development department, many buyers have the desire to repay, but the local banks have tightened their money bags, causing these buyers to be financially strapped.

According to the data of China Export and Credit Insurance Corp Xiamen branch, in October of this year, the amount of insurance that the company undertook in Xiamen foreign trade enterprises amounted to US $about 20000000, of which the amount of insurance in Europe and America reached US $15 million, an increase of 20% compared to the same period last year. After recovering, some of the losses were recovered, but the initial compensation amount still reached US $2 million 60 thousand.

SMEs in Xiamen are injured

In this wave of debt crisis, the most injured are small and medium-sized enterprises.

In Xiamen's compensation payment before October this year, stone, handicrafts, sporting goods and agricultural products accounted for 60%, which increased substantially over the past year. Most of these industries are small and medium-sized enterprises.

Xiamen's letter insured people said that stone, handicrafts, sporting goods, agricultural products and other export industries, there are many batches, small amount, buyers scattered characteristics, the main force is small and medium-sized enterprises.

This year, the four industries in Xiamen, the Insurance Company underwriting the size of $1 billion 500 million.

In the previous October, the amount of the report reached 8 million US dollars, which has been paid 3 million 800 thousand US dollars, 8 times the whole year last year.

"The export market of these industries is concentrated in Europe and the United States. Under the debt crisis, we need to strengthen risk prevention and control."

Xiamen's people believe that it is necessary to enhance sensitivity to the risks of countries, industries and buyers in Europe and the United States, further standardize trade written contracts, adopt "ownership retention" and other measures, and strengthen risk management and control by means of export credit insurance policy tools.

It is reported that Xiamen has already launched the industry unified insurance product in view of the characteristics of the four industries, and the government has vigorously supported it. There is no threshold for enterprise insurance, and there is no need to undertake or undertake only a small amount of insurance costs.

And next year, the industry is expected to expand its coverage to the photoelectric industry.

Jin Zhaomin, President of Xiamen Association of foreign trade and economic cooperation, said that at the 110th Canton Fair this year, the first phase of Xiamen's mechanical and electrical, lighting, pportation and electronic consumer goods increased by 17.8%. The second period of ceramics, gifts and furniture fell by 1.57%. The third phase of clothing and food fell more severely. Many orders had been pferred to Vietnam, India and other places.

Faced with the severe foreign trade situation, Jin Zhaomin suggested that enterprises should strengthen their confidence and not give up easily; seek new markets, develop new customers, and consider developing import business.