Firms warn against bad debts in overseas trade

BEIJING - Chinese enterprises should adopt stringent measures to safeguard against bad debts, as the proportion of non-performing assets is rising among companies involved in overseas trading, experts said on Wednesday.

"Due to fierce competition in the exports business, many domestic traders pay less attention to their buyers' credit records. They rush to offer customers favorable payment terms, which makes it easier for uninsured transactions," Chen Huanzhong, partner of Beijing-based Global Law Office, told China Daily.

According to Han Jiaping, director of the credit management department at the research institute of the Ministry of Commerce, Chinese enterprises said their overdue accounts had exceeded $100 billion by the end of March. The figure is expected to grow by $15 billion annually.