Buyers Have No Money To Pay. The European Market Is Worrying.

European debt crisis to China

In the late autumn, the European debt crisis intensified and took part in the 110 session.

According to Xu Daoli, general manager of Fujian Xin Chuang yuan daily necessities Co., Ltd.

In the past six months, the European debt crisis has continued to ferment, and the euro zone economy has been downhill as a whole.

For Chinese exporters, the negative impact of this aggressive sovereign debt crisis is not limited to the decline in orders.

Buyers have no money to pay.

"In fact, since the outbreak of the financial crisis, the demand for orders in European and American markets has not slowed down, but this is not the most worrying thing for companies."

Yang Baohua told reporters about what had happened to him recently.

Yang Baohua is a manager of a toy export company in Zhejiang. Not long ago, a group of $100 thousand worth of goods was sent to a purchasing company in Spain.

"We should have paid the balance at the end of August, but buyers repeatedly asked for extension of accounts. He said he was unable to pay now."

Yang Baohua had no choice but to report to China Export and Credit Insurance Corp Zhejiang branch, hoping that they would come forward to recover the payment.

"This is an old Spanish toy buyer, with a registered capital of 3 million euros, which is already a relatively large company in the region.

As far as we know, the buyer now owes several suppliers in China.

Yang Baohua admitted to reporters that he had been engaged in toy export for more than 10 years, and encountered this kind of thing for the first time.

The reporter understands that the toy market exported to Europe and the United States in the past is relatively stable, and there will be no mistakes. But now the industry's risk rate has obviously improved.

"Since the outbreak of the European debt crisis, the danger rate of enterprises exported to some peripheral countries of the European Union has significantly improved."

Yang Baohua said frankly, "for export companies, the most important thing is to take effective measures to protect themselves."

Yuan Guifeng, manager of Luoyang Huadu Furniture Group Co., Ltd., feels the same risk.

As a result, she was much more cautious than she used to be when she received orders from European customers recently.

"Recently, many European customers have delayed payment."

Yuan Guifeng said to reporters, "some have delayed for a few days, and a lot has been delayed for a month. Although they are beginning to worry, they are finally paying off."

Yuan Guifeng disclosed that there was indeed a situation when the industry peers were dealing with merchants in Europe when they suddenly met with bankruptcy or the balance could not be paid.

So, recently, when dealing with new customers, especially those in Eastern Europe, she tried to choose a reputable company.

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Still cherish a glimmer of hope

Although the recent European market seems to be sluggish, the companies interviewed admitted that they did not want to give up.

"Giving up is easier said than done."

Li Zhaozeng, general manager of Shenzhen Jufeng Xin Yi Import and Export Co., Ltd. seems a bit helpless.

In the company's booth, the reporter saw that less than half a day, many European merchants came to inquire about the delicate leather furniture that the company showed and revealed the willingness to buy.

"Seeing much and buying less, orders for this year are obviously much less than last year.

A few years ago, the highest order in a single month could still reach US $500 thousand, and the highest order this year is US $300 thousand. "

According to Li Zhaozeng, about 80%~90% of its products are exported to the European market.

"Over the years, we have accumulated a steady number of customers from Europe, and the products have been fully catered to the needs of European consumers from design to production and materials.

Now, whether it is to sell domestically or to other overseas markets, it is not an overnight job.

Li Zhaozeng said.

For the future of the European market, Li Zhaozeng said, "I can't guess."

However, he still holds faith.

He predicted that such a downturn in the European market would last at least until 2013. "After 2013, it will be better. Europe's economy will not continue to be bad, at least I hope so."

During the visit, reporters found that, compared with small enterprises, some large enterprises that had long traded with the European Union's core economies such as Germany and France were better than others.

Guo Aiqun, director of federal international sales and marketing, told reporters that her company had stable customers from Germany and France, and that the risks brought by the European debt crisis had not yet appeared.

"Risks seem bigger for small and medium enterprises."

Guo Aiqun said.