Chinese suppliers are less willing to make sales on credit as the country’s economy remains in recovery, a new survey has found, with firms providing longer payment terms to help mitigate delinquencies.
Coface, a global trade credit insurer, said in its latest China Corporate Payment Survey issued on Tuesday that only 65 per cent of 1,016 respondents were offering credit sales, down from 79 per cent in 2023 and below the pre-pandemic average of 74 per cent.
Ultra-long payment delays – lapses lasting 180 days or longer – have also proliferated, with nearly half of affected respondents reporting late payments worth 2 per cent or more of their annual turnover, a sharp increase from the 33 per cent of surveyed firms making similar disclosures in 2023.
“This trend highlighted heightened non-payment risks,” the firm said in its survey report, adding that based on the company’s experience 80 per cent of such delays were ultimately unable to be collected.
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