Mainland manufacturers' determination to succeed in export markets, even at the price of accepting late payments and weak credit guarantees, has saddled them with a worrying new problem - uncollectible debts.
An official report says mainland exporters are owed up to US$100bn (HK$780bn) by clients, a sum equivalent to one fifth of China's projected export earnings this year.
Bad export debt is piling up at a rate of US$15bn annually. As the domestic market matures, more and more manufacturers - home appliance makers especially - are looking overseas for expansion.
Price wars with exporters from other nations are routine, and so is the readiness to win orders by letting clients delay payments by as much as 1 year.
