Cooling global economy makes Chinese exporters hedge their bets

SHANGHAI (AFP) — Feeling the chill from the US subprime crisis, Chinese exporters such as Zhejiang New Oriental Fastener Company no longer take it for granted that their customers will pay them.

The company, whose 600 staff produce screws, nuts and bolts by the millions, has found that in an age of uncertainty it has to rethink the nuts and bolts of global trade.

"With the subprime crisis, each of our clients has become potentially exposed to unpredictable risks such as bankruptcy," said Xiang Guihong, sales manager at the company, which focuses on North American and Australian markets.

Xiang said his company used to have "great faith" in its regular overseas customers, but early this year it started to buy credit insurance for all export orders to guard against possible payment defaults.

"As late as last year we felt no need for such a practice. Now we understand that it ...