The Phenomenon Of Delinquency Aggravated &Nbsp; The European Debt Crisis Was Affecting Thousands Of Enterprises In Zhejiang Province.

Engaged in Europe Leather trade Business Wenzhou Mr. Zhao has recently been very entangled. He is thinking about whether to renew his contract with a Italy client because the other party is selling on credit. He doesn't know whether he should take an order or give up the customer.

The European debt crisis intensified. In December 5th, the international rating agency Standard Pool Co included the 15 euro zone countries, including Germany and France, on the credit rating watch list, and argued that the fermented sovereign debt crisis is having an impact on the most stable economies in the euro zone.

The European debt crisis is like a huge whirlpool, not only affecting the 16 countries in the euro zone, but also the "nerves" of Zhejiang businessmen who are thousands of miles away.

Aggravated delinquency payments

"I don't count on interest or compensation. I'll pay the 50 thousand euros owed to me." Liu Ming, who is in the Yiwu International Trade City, is worried.

It is not new for him who has been in business in Yiwu for many years, but Liu Ming said, "this time it was different. This customer used to be very good at credit, so he always paid money on time."

Liu Ming knew that the sudden "breach of contract" of the guest was related to the growing European debt crisis.

The guest surnamed Huang started working with Liu Ming 3 years ago. Every time he comes to Yiwu, Mr. Huang brings large European orders and some European businessmen.

In the first half of this year, Mr. Huang took a tour of Liu Ming's factory with several Holland businessmen, and ordered him to have a wedding ornament worth nearly 50 thousand euros.

"Although the volume of cargo needed is not large, it is very timely to cooperate with him, and the profit is good." Liu Ming said.

The goods were shipped to Europe in August. According to the contract, the amount of Euro 50 thousand will be pushed into Liu Ming's bank account by September 1st.

However, the remittance did not enter his account as scheduled. "I call to ask about the payment of goods, he always says that the economy is not good, things can not be sold until the products are sold out." Liu Ming said helplessly.

Huang yji, a textile processing company, did not need to worry about the money that he was worried about but failed to implement as much as Liu Ming did. But the spread of the European debt crisis set him up with a spirit of twelve points.

In particular, he talked about the business department of the company. With the expansion of the European debt crisis and the change of the economic situation, many European enterprises are faced with problems such as weakening of financing capacity and difficulties in commodity sales. At that time, they will probably default on the payment, default and even bankruptcy, which may lead to losses to the enterprises in the country. Therefore, the export credit insurance must be implemented, and the insurance rate of the company must reach more than 90%.

Such worries are well founded. Since the beginning of this year, the national newspaper loss data has broken through the historical peak, which is 3.5 times that of the same period last year, and much more than that of the year when the financial crisis broke out. Among them, the risk caused by political turmoil and European sovereign debt crisis accounted for more than 60% of the possible losses this year.

Statistics from China Export and Credit Insurance Corp Zhejiang branch show that from 1 to November this year, the reported losses of export enterprises in our province increased by 40% compared with the same period last year. The number of enterprises that reported losses accounted for 1/4 of the total number of insured enterprises. At the same time, the number of reported losses amounting to more than US $1 million reached 40. In the face of a large amount of insurance and reporting, employees of Zhejiang Xin Bao had to work overtime.

"Foreign trade spanactions from orders to pick up often have a certain period of time, the order is in good condition, the time of delivery has changed, some foreign buyers will choose to refuse to accept goods at this time." Tao Lin, the business management office of Zhejiang branch of China export credit insurance, said that under many circumstances, Zhejiang enterprises had already sent out the goods, but they could only stop at the the Atlantic or Pacific terminals to pay the daily storage fee. How to do it? If an insurance company has been insured, once the case is reported, the insurance company will negotiate with the buyer, and if it fails, it can directly claim. Similarly, the export credit insurance company will promptly hand over the case after receiving the goods without payment or the failure of foreign companies.

Examination of trade barriers

In November 10th, the US Department of Commerce launched a case study on the anti subsidy and anti-dumping investigation of photovoltaic cells in China. 11 enterprises, including CHINT solar energy, Zhejiang Shu Qimeng and Ningbo Japan solar energy, have become the respondents of Zhejiang.

In November 18th, three shares were disclosed. The federal communique released the first administrative review final result of the US anti dumping case, and the dumping rate was 5.22%.

On the same day, the shield environment announced that according to the first annual administrative review final result of the anti-dumping investigation commissioned by the US Department of Commerce to the United States market, the company's subsidiary company, Hun Hean, had a dumping margin of 9.42%.

In November 15th, Hai Liang shares announced that Zhejiang Hai Liang Limited by Share Ltd recently learned that the Brazil Trade Protection Bureau launched an anti-dumping investigation on the purple copper pipe originating in China in November 10, 2011. The dumping investigation period is from July 1, 2010 to June 30, 2011.

Many developed countries in the West are still hovering in the financial crisis, which may lead to more trade barriers. For Zhejiang, a big export province, it will face more trade friction next year.

"The European debt crisis will reduce China's economic growth by 0.5 percentage points and export by 7%." "China is facing the risk of world trade stagnation and trade protectionism," said Patrick Adys, an economist at the French Foreign Trade Bank.

From the traditional rigid demand products to the emerging industries, they encountered antitrust antidumping. From short selling "made in China" to the United States Senate insisted on the adoption of the RMB exchange rate, all the major trading countries in Europe and the United States released a signal: fighting for overseas markets and trade surplus has quietly started, and trade protectionism is rising again.

As a major export province, Zhejiang's traditional foreign trade enterprises have felt "cold" since the third quarter of this year. Yiwu customs data showed that the volume of local exports decreased by 2 months, and the trade volume in October dropped by over 25%. The Ministry of Commerce predicts that the growth rate of China's export growth will probably continue until next year.

"The situation of trade remedy investigation coming from EU will be more severe next year." Sun Shaobo, deputy director of the Fair Trade Bureau of the Zhejiang Provincial Department of Commerce, said that in 2010, the EU launched 11 trade relief investigations on China's export products, 1.6 times in 2009, and the number of cases registered was the largest in nearly four years, and the amount involved was relatively large.

The undercurrents are surging. Just recently, Teguh Hurt, a trade commissioner of the European Commission, told Reuters that the EU will take action against China's massive government subsidy projects to protect China's low-priced products from unfair subsidies into the European market and pose a threat to European industry.

In Sun Shaobo's view, signals like this must be taken seriously. Reporters also learned that, in the United States on my photovoltaic products launched a "double reverse" survey, while in the EU, is also brewing the same preparations. As we all know, for China's PV industry, without the EU market, there will be no world's first capacity and export scale. {page_break}

When a door closes, another door will open.

The world is full of uncertainties, but fortunately, Zhejiang businessmen have always been flexible. For them, cold weather may be the prelude to brewing new shoots.

These days, Chen Yonghai frowned and was lost in thought. As the boss of the Yiwu butterfly socks industry, seeing the biggest market of its own products, European orders are falling rapidly. At the moment, there is only one thing that he wants to figure out in his mind. Where is the next market?

Since the beginning of this year, Chen Yonghai's largest market western Europe has reduced its orders by 12%. The order of a Greek main customer has been reduced from $680 thousand per year to $100 thousand this year.

Chen Yonghai said he had no time or energy to sigh. Faced with declining orders, he wants to turn to emerging markets. Brazil and Russia have become the latest targets.

There are always two sides to everything. When exports become uncomfortable, overseas acquisitions are full of joy.

Recently, Ningbo Huaxiang Electronics Group has signed an agreement to acquire the core business of the German German car company. The total purchase amount is expected to reach 60 million euros. Headquartered in Bavaria, Germany, "Senna", with more than 2000 employees, is a leader in high-end car interior and functional parts. It mainly provides natural peach wood interior products for high-end brands such as Audi and BMW, and declared bankruptcy early this year.

Also in Ningbo, Yizhou Group acquired some stake in the German fortune group. Although it only cost 10 million euros, the company, which was founded in the early 90s of last century, has become the "big boss" of the famous European communication link product manufacturer born in 1920. It is necessary for the industry to increase its confidence in "going out" through mergers and acquisitions.

Statistics from the external affairs department of the Zhejiang Provincial Department of Commerce show that in the first 10 months of this year, Zhejiang enterprises had approved direct investment in Europe for us $770 million, accounting for 1/4 of overseas investment.

"Whoever travels fast in the domestic market will have a new way out, and enterprises will put their hopes on exports and there will be no way out." Jiang Hongyuan, President of Zhejiang Furniture Industry Association, said.

Data from the big furniture export County, Yuhuan, Zhejiang, showed that in the first three quarters, although the export decreased by 8.63%, the overall sales increased by 17.39% over the same period, due to the relatively rapid growth in domestic sales.

Zhou Guojian, chairman of Jiaxin silk, told reporters that in recent years, the company has intensified its efforts to expand the domestic market. For example, at the end of last year, Jiaxin silk changed the 60 million 500 thousand yuan raised fund originally designed for silk woven garments project to "Jiaxin silk domestic brand project". E-commerce has also brought great breakthroughs in Jiaxin's domestic sales. This year, the company's online sales can exceed 10 million yuan, and it is expected to exceed 30 million yuan next year.

In Zhou Guojian's view, we should not simply interpret "spanformation and upgrading" as "abandonment" of exports. In fact, exports of silk, clothing and other products still have broad prospects. The key lies in how to further upgrade product development and marketing strategies.