EU SMEs exporting goods and services to China often raise questions about payment options, conditions, and procedures related to payment. Their main concern is the buyer’s financial credibility, and how to minimize risk of delayed or zero payment. Coupled with this is the lack of understanding of local banking systems and foreign exchange control procedures, which can considerably add to payment times.
In order to provide exporting SMEs with reliable information and help them navigate the complex area of international trade payments from China, the EU SME Centre has prepared this guideline.
Although many obligations in relation to payment lie with the importer\buyer (Chinese company), we include explanations of these obligations and processes so that the EU exporter can better understand the complexity of overseas payments from China, whilst at the same not be misled by arguments from the Chinese party when it intentionally wants to leverage more advantageous payment methods for itself, delay payments or not to pay at all.
This guideline will cover the payment options and challenges for exporting goods and services to China respectively.