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The huge Credit Insurance international company Coface issued a warning to the Israeli exporters to China, according to which the deteriorating economical situation is harming the Moral of payments in this country.
According to the datas Coface has, based on checking 1000 Chinese Companies, it was found that 8 out of 10 companies in China reported about considerable delays in payments they were supposed to get. App.10% of the companies reported of an average of 150 days of delays and app. 18% of the companies reported delays of over 180 days.
G.M. of Coface Israel reported that he estimates that at first stage the payment delays will harm the local companies and second step will be – harming the exporters to China. He estimates that the situation is not expected to improve in the near future
According to the Israeli Official Stastics Office the Israeli export to China was over 3 Bilion USD, an increase of 20% compared to 2014 and as of beginning 2016 there is also a further increase of the export as rtecorded for the first 2 months 2016, by app. 9%.
China’s annual GPO in 2015 was 6.9%, the lowest for the past 25 years. Coface’s forecast for 2016 says that the negative tolpic of growth will be only 6.5%.
According to Coface the Construction branch is the most dangerous and its condition is deteriorating repidly. So is the Telecom branch facing payment problems.
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