China: Increase in trade credit risk on the horizon?

Survey respondents in China expect trade credit risk to increase over the coming months. Find out more about their business challenges going forward.

It is too early to say whether the recent improvement in the outlook for China’s economy will be temporary or long lasting. What is certain is that, despite this unexpected trend inversion, the world’s second-largest economy will still be facing many challenges in the near future. China’s success in becoming a more consumption led economy and less dependent on export, especially as global demand weakens, should have a significant impact on whether the recent improvement is long lasting. The uncertainties added by the still unsolved trade conflict with the US, the effects of which ripple across the Asia Pacific region, exacerbate the already strained Chinese business environment. Here insolvencies are expected to further increase over the coming months, despite easier access to financing for businesses.