The Improvement Research Of International Trade Financing Product In China Construction Bank Jilin Branch

Since the implementation of reformation and opening, China’s society has beendeveloping in harmony which provides the stable social environment. China’sbooming economy leads the development of international trades. After16yearsnegotiation, China finally became the member of WTO on December11,2001.China then expanded the opening of3People’s Welfare industries simultaneouslyafter joining WTO. China keeps liberating the international trades by deepening thereform of trade regulation, reducing the trade bans and government interference.Over10year’s development, China has made brilliant achievements in openingreflected by its substantial increase of international trading volume, which surged toUS$4.16trillion in2013from US$0.5trillion in2001. China is now ranked No.1interms of the trading amount and one of the most powerful trading nations of theworld. In2009, China’s State Council put into trial of RMB cross border settlement.As a consequence, China’s RMB cross border business has developed sharply inthese few years with around50%annual growth rate. In2013, the total volume ofRMB cross border reached to CNY46.3trillion. With the development of China’seconomy, expansion of international trade and internationalization of RMB, the newcompetition environment for the Banks has been created. As one of the big4state-owned banks in China, China Construction Bank Jilin Branch (CCB Jilin) is toimprove its trade finance business, which is driven by the market competition, andalso its social responsibility to contribute trade and economy development.By analyzing the current situation of CCB Jilin’s trade finance business andinternational trade environment of Jilin Province, this article summarized the existing issues in the trade finance areas, which include the high assessment criteria,limitation to small to medium size enterprises, the inappropriate trade finance modelagainst the new market conditions, the short tenor for low cost trade finance business,etc. This article also analyzed the causes of above issues according to the existingbanking policies and government regulations from such as State Administration ofForeign Exchange. Further, this article designed the improved solutions in tradefinance business by combining the deposits and RMB wealth management, low costoverseas funding and the trend of RMB appreciation. The aims of this solution is tocomply with existing regulations, increase enterprises’ profit, reduce enterprises’funding cost, optimize the assessment procedure, meet the needs of economydevelopment and RMB internationalization. The results have been tested after thisimproved solution by introducing the real case. Moreover, this article raised thepotential risks during the implementation of new solution, and related risk controlmethods. This article also made improvements in Business Administration, StaffMotivation, Human Resources and Technologies.