Story perspectives

Exporters Struggle with Extended Payment Terms Amid Growth

10/27/2025

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Summary

Story summary

At the Canton Fair, exporters report that overseas buyers are extending payment terms, squeezing profits.
Small and medium-sized enterprises face this pressure, with some clients demanding 90-day post-shipment payments.
Kevin Huang, a lighting exporter, says meeting these terms is crucial to avoid losing orders, but it strains cash flow.
Despite the tighter liquidity and higher inventory pressures, China's foreign trade grew 6% year-on-year in the third quarter, showing sector resilience.

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Story summary

At the Canton Fair, exporters report that overseas buyers are extending payment terms, squeezing profits.
Small and medium-sized enterprises face this pressure, with some clients demanding 90-day post-shipment payments.
Kevin Huang, a lighting exporter, says meeting these terms is crucial to avoid losing orders, but it strains cash flow.
Despite the tighter liquidity and higher inventory pressures, China's foreign trade grew 6% year-on-year in the third quarter, showing sector resilience.