Research On The Development Of The Export Credit Insurance Of China

Entering the new century, China is playing a more active role in the global economic development based on WTO. Under the rules of WTO, it has been a key subject for the government and relevant departments to consider how to support and accelerate development of foreign trade. Therefore as a policy-based insurance business, the export credit insurance, with close attention of all governments, has been widely used in international trade and has become an effective measure for developing foreign trade in all countries. With China's accession into WTO, unique advantages of export credit insurance are becoming more and more outstanding. Originating in the middle of 19th century, the export credit insurance is created to help domestic exporters to achieve credit and loans under favorable conditions so as to encourage exports, to accelerate economic development as well as to offer more jobs. One of the most special features of this insurance business is government's support and participation. So it is different from common commercial insurance in aspects of operation principles, scales and responsibility terms. Current international export credit insurance organization is Brene Union and there are 5 major modes for international export credit insurance organizations: No.l. Direct operation of the government. No.2. Indirect operation of the government. No.3. Private operation entrusted by the government. No.4. Mixed operation mode.No.5. Import and export bank. China's export credit insurance used to be operated separately by China Import &Export Bank and People's Insurance Corporation of China, which went against development in management and organization. Funded by the Chinese Government, China Export & Credit Insurance Corporation was established at the end of 2001, signalizing the country's first step of setting up standard organizations in this field. China has supported over 19 bln US$ exports involving more than 180 countries around the world since it started export credit insurance business in 1989. However, the limited scale of export credit insurance is unbalanced with China's rapid growth of export and huge volume of trade. Compared with developed countries, China's export credit insurance is influenced by problems in administration system, operation mode and specific running measures. Problems including weak recognition, lack of law support, incomplete decision and supervision system, lack of information and professional talents are mainly found in government, export credit insurance organizations and businesses.Aiming at solving these problems and based on making full use of functions of export credit insurance organizations, the government needs, to. foster a sound climate including drafting out related laws and regulations, sorting out supervision system, intensifying support and creating friendly environment; the export credit insurance organizations need to complete managing system, regulate operation and strengthen communication and cooperation; the exporters need to pay close attention to effects of this insurance in business operation, controlling risk and increasing profit.One of the unique and new feature of this thesis is that the writer proposes problem solving measures to improve the country's current situation of export credit insurance in terms of government, organizations and enterprises based on analysis on China's history and current conditions in this field compared with developed countries. As a result, suggestions for policies in this thesis are clearly stated as well as operative...