Recently, MOFCOM and China Export & Credit Insurance Corporation (Sinosure) jointly issued the Notice on Expansion of Export Credit Insurance Support for Effectively Performing Cross-Cyclical Adjustment to Further Stabilize Foreign Trade, identifying export credit insurance as an effective means to stabilize foreign trade. Facing such dire and complex external environment, what measures will be taken to harness export credit insurance for steady development of foreign trade?(2022-02-24)
Export credit insurance is an internationally recognized instrument to promote trade that is consistent with WTO rules. It plays a key role in stabilizing foreign trade and investment.
At present, China’s foreign trade is still confronted with multiple uncertainties and destabilizing factors. Following the instructions by the CPC Central Committee and the State Council, MOFCOM will work with Sinosure to build on the efforts of previous policy measures to fully support export credit insurance in providing risk guarantee and enhancing credibility, step up coordination between local commercial departments and Sinosure’s branches, introduce targeted supportive measures in light of specific conditions of different localities, work to effectively implement various measures, so that foreign trade companies are better positioned to guard against risks in a more targeted manner and confident in their growth. We will focus on the following aspects:
First, increase support of export credit insurance for micro, small and medium-sized enterprises (MSMEs), include more MSMEs into the insurance scheme, specifically lower their insurance costs and optimize services concerning claim settlement and recovery. Second, step up insurance acceptance for new business models of foreign trade including cross-border e-commerce and overseas warehouses, strengthen innovation in product models, and provide customized services for enterprises. Third, enlarge the insurance coverage of industrial chains, further refine services for the niche areas of industrial chains, fully leverage the role of domestic trade credit insurance in expanding domestic demand, and facilitate the integrated development of domestic and foreign trade. Fourth, keep enhancing short-term insurance policy financing, support MSMEs in a targeted manner through combined approaches such as “government+bank+insurance” and “re-lending+policy financing”, so as to use insurance policies to enhance credibility and ease the financing difficulties for enterprises. Thank you.