Business Administration Pattern Of China Export&Credit Insurance Corporation

Global export&credit insurance market has developed for more than a century,meanwhile, more and more countries have applied export&credit insurance as astrong policy and a effective measure to expand their international trade. After theWorld War II, with the continuously increasing growth of global economic integrationand trading market,export&credit insurance has been developed enormously and anincreasing number of national governments began to realize the positive effect whichexport&credit insurance has on their nation’s economy, thus many institutions andsystems which are in various forms but provide similar export credit insurance servicewere established by those governments according to their own political policies. Byfar, there are over70countries and regions in the world which have ownedprofessional export&credit insurance institutions, and the total proportion ofinternational trade capacity insured by all of those institutions has reached15%. TheWorld Trade Organization (the WTO) has provisions which expressly indicate that if aexport&credit insurance institution of a nation could balance its financial situation ina certain period of time, its service would not be considered as a export subsidy.Therefore, more and more national governments treat export&credit insurance as avery important financial instrument to support exports of domestic enterprises andprovide effective security assurance for account receivables of exporting companies.In the face of the severe international financial crisis, export&credit insuranceplays a positive role in global trade by providing professional credit risk managementand overseas credit risk warning information for exporting companies. Compared todirect guarantee of export credits, export&credit insurance has unique comparativeadvantages.Meanwhile, several large commercial export&credit insurance companies inEurope are accelerating their cross-border business expansion and trying to enterChinese market by all means. Besides, certain domestic commercial insurancecompanies intend to apply for authorization from Chinese government to run export&credit insurance in local market.The paper will introduce the history of the development of export&creditinsurance service in China. It will cover the whole story from the very beginningwhen the government authorized the only insurance company at that time, People’s Insurance Company of China(PICC hereafter), to run original export&creditinsurance services in1980s to the next stage when PICC and Export-Import Bank ofChina (EIBC hereafter) were united to provide larger range of export&creditinsurance services, then to current stage when all export&credit insurance serviceswere integrated into the only entity which was authorized to run export&creditinsurance by Chinese government, China Export&Credit Insurance Corporation(also known as Sinosure) which established only a week after China formerly joinedthe WTO.This paper will make comparisons between export&credit insurance institutionsin different countries, and specifically discuss business modes of the successful anddistinctive ones.It will also discuss the historical inevitability and sign of the times about thefact of using specific operation form under the background of specific economic andgovernment goals. And based on this discussion, taking many other factors, like thesignificant policy orientation of Sinosure and its strong effect on national economicsafety, diplomacy policy and other government decision made for economicdevelopment, into consideration, it will have a in-depth discussion on issues aboutreformation of export&credit insurance services in China combined with a casestudy about the condition of export&credit insurance services in Jiangxi Province.