On The Export Credit Insurance And Its Application In China

With the globalization of economy and improvement of dependence onforeign trade of every country, after China joined WTO, many exportenterprises doing their foreign trade business are confronted with difficultiessuch as risk of foreign exchange receipts, development of new market andfloatation of loan. To solve the problems and face the new situation, a wholeset of policies of export credit insurance are made by China government,which are measures and financial instruments of guaranteeing the rights andinterests of foreign exchange receipts to create a more stable foreign tradeenvironment. In this paper, firstly, a general description is given to explain thedefinition, the history and the vital function of export credit insurance.Secondly, institution and service of SINOSURE are briefly introduced.Positive role of export credit insurance for China export is summarized basedon the analysis of the cases of export enterprise covered insurance. Thenapplication of export credit insurance in China is presented and somequestions are given. The cause is analyzed from rule, system, ways ofcovering insurance, insurance rate, and risk conscience and service level.Thirdly, prospect of export credit insurance in China is discussed to show theurgency of promoting it at present. Suggestions are made to have the systemof export credit insurance perfected by amplifying regulations, improvingsystem, changing the ways of covering insurance, reducing rate, strengtheningrisk conscience and raising service level. Lastly, it's shown by dataexplanation that there is a gap between developed countries and China thoughexport credit insurance in China gets more and more attentions. To face thefacts, the government, the institution and the enterprises should have activecooperation, give full play to support of export credit insurance to foreigntrade and improve the system of export credit insurance in Chinacontinuously.