New York Times published an article today about the Chinese leading TV producer and exporter's great loss due to the huge unpaid accounts with a US company named Apex Digital.(Not a responsible website because many links are dead)
Apex has been the major US cooperator with Changhong, the biggest TV producer in China since 2001. According to the data from Changhong, Alex has not paid the $480 million(not billion, thanks for Fon's tips) dollars for the export product of Chang Hong until now. That's part of the reason the CEO of the Apex digital, JI Longfen, is jailed by the police from the Sichuan provice, where Chang Hong is based.
The stock trading of Chang Hong has been closed yesterday. The spokeman said the reason was that ChangHong will release the report with great loss that day.
It is not the news to many insiders who are familiar with the development of Chang Hong. In July, the magazine Caijing has already published an article about the leaving of the company's creator, Ni Runfeng. The article has implied that the new management will take action against its debt, than implied, in some extent, the news today. Five month, is a right time for the new management familiar with all the relations and prepare for the actions.
If it is true that Mr. Ji, the CEO of Apex, was jailed in Sichuan now, Changhong has obviously made up its mind to settle the unpaid amount with Apex. But what is harder is how it can compete with the other counterparts in the overseas market and avoid the guilty of dumping. That's the most important thing for Changhong's future development.