In the Atradius Payment Practices Barometer, companies from different countries are asked to evaluate the payment practices of their domestic and international business partners and their company's credit management in general.
Despite never experiencing a recession in the Chinese economy, businesses in China have felt the impact of the global recession in the markets of their customers. As one of the largest exporting countries in the world, China's trade flow to western markets in the United States and Europe has resulted in Chinese suppliers experiencing the pain of their customers in respect to lower order flows and payment delays.
This impact is exacerbated by its heavy reliance on its manufacturing base to drive the economy. As a result, Chinese respondents were some of the most likely to experience un-agreed to late payments and requests for extended credit terms of any country surveyed and subsequently a high likelihood of being negatively impacted by late payments. Therefore Chinese respondents employ many of the credit management practices surveyed to improve the speed and likelihood of timely payment of outstanding invoices.
Detailed results on payment practices in Hong Kong are also available.
For overall group findings, please also see Payment Practices Barometer: Mandatory Payment Terms in the EU -- October 2010.