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back to index backCHINAtalk March,  2017


Country Report China 2017

The on-going economic slowdown, overcapacities and high indebtedness of many businesses will lead to further increasing business insolvencies in 2017.

Industries performance

Insolvencies expected to increase further in 2017

The current economic slowdown has led to increasing overdue invoices and businesses requesting longer payment terms – a trend that is expected to continue in 2017.

Insolvencies are also expected to rise further after a substantial increase in 2016, as overcapacity and high indebtedness remain an issue in many sectors (especially construction, steel and metals, shipping, mining, paper). While listed and state-owned businesses still benefit from stronger support from banks and shareholders, more caution is recommended when dealing with small and medium-sized private businesses, as many of them - even those active in better-performing industries - often suffer from limited financing facilities.

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Source: Atradius Collections - GAI






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