Global Trade Faces Six Major Risks: Export Credit Guarantee, Escort, Spinning And Weaving Enterprises, Expanding Markets

In 2010, China's textile and apparel industry

Global risks will show six characteristics.

The China Export and Credit Insurance Corp annual working conference held in Beijing recently pointed out that the global risk situation in 2011 will show six characteristics: first, the predicament of structural adjustment facing the economic recovery; two, the risk of sovereign debt crisis spreading; three, the global financial system is still very fragile; four, emerging market and developing countries are facing the pressure of currency appreciation; five, the volatility of asset market and capital market; and six, the global inflation level will rise.

China's credit insurance data show that in 2010, there were many cases of heavy losses reported in North America.

Since the US economy has gradually stepped out of recession, the total volume and amount of increase reported by China's credit insurance companies have been reduced, but the small scale Importers' escaping and illegal business operations have increased significantly.

European countries such as Italy and Spain are more affected by sovereign debt crisis. Business operations and financing have been seriously affected. The amount and amount of reported losses have increased considerably.

The bankruptcy and closure of enterprises in Asia have been reduced, and exchange rate fluctuations and foreign exchange settlement risks still exist.

The risk level of African region is the highest, and the financial guarantee effectiveness of some countries is insufficient.

In Latin America, the extension of accounts is obvious, and the difficulty of repayment is relatively large.

In response, China's letter insurance reminds exporters to fully understand the complexity and variability of the world economic situation, carefully select trading objects and banks, rationally diversify trade and investment fields, and actively implement various risk prevention measures to ensure the safety of exports and investment.

First, we must pay attention to the impact of trade barriers.

The two is to pay attention to bank risk willingness to pay and bankruptcy risk.

The three is to pay attention to the risk of buyer's default, which may be brought about by exchange rate risk.

The four is concerned about the debt crisis, the willingness of buyers of the state and the risk of bankruptcy.

Five, we should pay close attention to the credit risk of underdeveloped areas.

China's letter guarantees many measures to "escort" foreign trade

According to analysis, in the current and future period, the credit risk of international trade and investment is still high, and the market demand of export credit insurance and investment insurance will remain at a high level.

As an effective tool to prevent credit risks, export credit insurance will further play a policy role in helping foreign trade achieve "market expansion, structural adjustment and balance".

To this end, the China Export and Credit Insurance Corp formulated the new year's development goal, and proposed to strive to achieve export credit insurance and overseas investment insurance amount of 235 billion US dollars in 2011.

Wang Yi, general manager of China's credit insurance, said that in 2011, China's trust insurance would focus on optimizing its structure and strengthening management, and improving its product, service and resource allocation, strengthening risk management and control and team building as a guarantee to continuously improve its sustainable development capability and comprehensive strength.

In view of all kinds of risks that may happen in the future, the China Securities Trust said it would strengthen the risk monitoring and analysis of the underwriting business, and achieve real-time monitoring of macro political and economic risks, industry fluctuation risks and overseas buyers' risks, and timely identify risk signals, and resolve them as soon as possible.

At the same time, China's credit insurance will also use the platform of government and industry associations to hold risk seminars with enterprises to hint risks to enterprises. According to the industry characteristics and risk changes, formulate targeted industry underwriting measures; deal with the reported loss cases in a timely manner, make quick claims, make up for the loss of export enterprises, actively carry out investigation and recovery work that can be damaged before and after, and safeguard the interests of export enterprises.

Export market helps export credit insurance

In 2010, China's Insurance and guarantee business amounted to a total of 196 billion 430 million US dollars, up 68.5% from the same period last year.

Among them, the middle and long term export credit insurance achieved a sum of 9 billion 650 million US dollars, an increase of 19.7%.

Short term export credit insurance has been insured by US $154 billion 330 million for the whole year, an increase of 71%.

The domestic trade credit insurance achieved a sum of 112 billion 600 million yuan, an increase of 33.8%.

Support for enterprises to obtain bank financing 250 billion yuan, an increase of 62.8%, to the enterprise to pay an indemnity of $500 million.

In 2010, China's export credit insurance increased by 66.8%, achieving sustained and rapid development. The total amount of export credit insurance accounted for 22.8% of China's general trade export volume, which was 4.2 percentage points higher than that in 2009.

By the end of 2010, the total underwriting amount of China's credit insurance export credit insurance, the underwriting amount of short-term export credit insurance and the underwriting amount of overseas investment insurance have risen to the top of all official export credit institutions in the world.

A series of figures show that China's credit insurance's development, management and risk control capabilities have been significantly enhanced.

In 2010, the export industry supported by the medium and long term export credit insurance was more diversified and the country was more extensive, helping export enterprises to enter the market which was difficult to enter in the past.

Short term export credit insurance undertakes 111 billion 730 million high risk business such as "exporting to emerging market countries", "long term credit sales export" and "forward letter of credit export" and so on, which directly stimulate export growth by about 9 percentage points in three.

In 2010, China's credit insurance achieved remarkable results in guiding enterprises to adjust their structure and promote balance.

In order to implement the ten major industrial revitalization plans and related industrial policies, China has clearly identified the seven industries of Electromechanical, light industry, textile, automobile, high and new technology, agricultural products and medicine as underwriting key support industries.

At the same time, China's credit insurance company has given priority support to strong brands, enterprises, export or industrial bases and leading enterprises with strong innovation ability, independent intellectual property rights and independent brands, and has given preferential policies in terms of coverage, credit period, quota satisfaction and quota adjustment.

Short term export credit insurance supports the above seven industries for nearly 130 billion US dollars a year, and the proportion of insurance coverage has increased from 78% in 2009 to 83%.