The lack of creditworthiness among Chinese enterprises results in an annual loss of 600 billion yuan.
Release Time:
2011-05-18 18:32
Source:
Information Weekly Report
According to statistics from the Ministry of Commerce, Chinese enterprises suffer direct and indirect economic losses of up to 600 billion yuan annually due to credit deficiencies, among which losses caused by poor product quality, counterfeit and fake products, and contract fraud amount to 200 billion yuan.
There is a set of statistics: the bad debt rate of Chinese enterprises is as high as 1% to 2%, and it is increasing year by year, while in mature market economies, the bad debt rate of enterprises is usually between 0.25% and 0.5%; among the 4 billion contracts signed annually in China, the fulfillment rate is only 50%.
The reason why there are so many incidents of fraud, counterfeiting, and breach of contract nowadays lies in the extremely imperfect credit system in China. The cost of dishonesty for enterprises is too low, while the cost of credit investigation is too high. Many enterprises repeatedly default maliciously, yet there is nothing that can be done about it. Such enterprises would be automatically eliminated by the market in developed countries with mature credit systems. For example, according to the North American Free Trade Agreement, if a company like Walmart owes payment to three suppliers for more than three months, with each debt reaching 5,000 USD or more, any one of these three suppliers can legally declare Walmart bankrupt on the US stock exchange. At the same time, the personal behavior of the legal representative of the enterprise will also be affected: they will be restricted from leaving the country, prohibited from driving overly luxurious cars, and even limited to using certain mobile phone brands such as Shenzhouxing instead of Globalstar, and so on. Under such circumstances, enterprises dare not easily default.
It is reported that the Ministry of Commerce will study and formulate systems and measures related to the development of the credit service industry associated with commercial credit, promoting the establishment of a comprehensive, standardized, and highly professional credit service industry. At the same time, policies related to the construction of credit service platforms for business district financing will be studied and formulated. The business district financing credit service platform is led by business district management organizations, relying on foundational units or institutions, building a platform centered on a regional credit information exchange and sharing database, providing services such as financing support, information inquiry, credit evaluation, credit management consulting, and training, and promoting the use of enterprise credit reports and other credit products.
(Excerpted from Economic Information Daily)
Related Documents
undefined
Other News
2025.03.31
2025.03.19
2025.03.11
2025.03.10
2025.02.18
2025.02.18
Contact Information:
Hotline:
Address:
No. 46, Dongsi West Street, Dongcheng District, Beijing
Email:
China Laundry Information Center
Scan to Follow
China Business Laundry Committee
Scan to Follow
Laundry Encyclopedia
Scan to Follow
National Laundry Label Committee
Scan to Follow
China Business Vocational Appraisal
Scan to Follow
"China Laundry"
Scan to Follow
China Laundry Committee
Scan to Follow
China Business Laundry Committee
Copyright: China Commercial Federation Laundry Professional Committee
Beijing Public Network Security 11010102005379
Website Construction:China Enterprise Power Beijing