Desperate for sales, China’s traders chase risky deals in emerging markets
With the US market closed off, Chinese exporters are scouring the globe to find new buyers – with mixed results
Jim Xie, a fabric trader from eastern China’s Zhejiang province, was ecstatic when he received his first order from Saudi Arabia worth hundreds of thousands of dollars.
For years, his sales to the American market had been dwindling. Now, he dreamed of cracking open a lucrative new “blue ocean” market in the Middle East.
But things quickly started to go wrong. After Xie shipped the goods last year, the buyer – a Syrian-run business – failed to make the final payment. Then, they delayed the transfer again, and again.
Desperate, Xie travelled to Syria in January to try and track down the buyer, but his efforts ended in failure. Later, he realised he never really stood a chance.
“The buyers often set up small trading companies in Saudi Arabia or Dubai, which they can shut down overnight,” he said. “They may be Syrian, Omani, or from other countries – not nationals of the country where the company is registered.”
For Xie, the experience reflects the harsh new reality facing Chinese traders like himself, as they rush to find new sources of business to replace the lucrative US market.