Research On China’s Foreign Trade-Oriented SME Export Credit Risk

Currently as the global economic integration process accelerates, Chinese economy continues to grow fast. Since foreign trade has promoted economy, employment and industrial upgrading, it has become an important part of China’s economy. More and more small and medium-sized foreign trade enterprises join in the export trade. Small and medium-sized foreign trade enterprises have become a new force and one of the important pillars of our export trade. Although the scale of China’s export trade continues to expand, the credit risk of foreign trade enterprises is increasing. With the rapid development of the global economy and international trade competition, foreign trade enterprises have been damaged by the lack of credit. Credit risk has become a huge obstacle to the development of China’s foreign trade. Small and medium export enterprises are generally small scale and relatively weak. If a large amount of credit default phenomena emerge, it will make the company fall into business trap.Both qualitative analysis and quantitative analysis are applied to study the credit risk of small and medium-sized foreign trade enterprises in this paper. We also raise a preliminary credit risk measurement model. This paper also applies standardized research methodology and empirical analysis. Based on the date from export enterprises in Shandong Province, this paper uses financial indicators and non-financial indicators to empirically analyze the factors affecting the credit risk and foreign trade export trade value of small and medium enterprises in China. In the empirical study, we analyze the impact of financial indicators on credit risk and the total value of exports. The empirical results show that the size of the assets of foreign trade enterprises, operating age, asset liquidity, investment in education and training, operating costs have a significant impact on export trade value and the control capability of credit risk. Therefore, when we are constructing credit risk assessment model, we should consider the firm’s size and industry specific factors. Corporate credit risk and export trade value factor in reducing the level of credit risk is very important for us to lower the cost.In order to take measures to control the export credit risks faced by small and medium-sized foreign trade enterprises, we make research on factors which influence foreign trade enterprise credit risk and export trade value. We gradually analyze the credit risks faced by small and medium-sized foreign trade enterprises. In this paper, we proposed some methods and measures on the credit risk management. Finally, the paper make a summary, at the same time, we put forward some relevant policy recommendations.