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Atradius expects more Defaults in classic Industry

Credit insurer Atradius warns of payment risks in traditional sectors of Chinese industry. As a result of new economic priorities in the 14th Five-Year Plan, the service provider expects liquidity problems for industries that lose government subsidies. “The political and economic environment will continue to deteriorate for the Chinese old-economy sectors of steel, metal processing, shipbuilding, chemicals and parts of the electrical industry ,” said Thomas Langen, senior regional director at Atradius for Germany, Central and Eastern Europe. “Many of these companies have been highly indebted for some time.” German exporters should prepare for rising risks. It’s a very different story for industries that are benefiting from China’s plans. These are the auto industry, IT and mechanical engineering. The credit insurance company expects demand from the People’s Republic to remain high in these sectors. niw

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