Research On China's Export Credit Insurance

Since China's entering to WTO, some of the subsidies to the export become restricted or even forbidden gradually. Then it is urgent to take other ways that conform with the rules of WTO to promote the export of our country. According to the experience of the developed countries, our authorities set up the Export Credit Insurance Company, which provides the service of export credit insurance to the exporters, to support the implementation of the policies of international trade. In the developed countries, the export credit insurance has a history of almost 100 years. But the beginning of it in our country is much late. In 1989, the China's People Insurance Company just began to provide this service, then the development of it was slow. Almost 20% to 30% of the export in Japan is supported by the export credit insurance, while in our country the ratio is only about 1 %. It is still a strange glossary for the majority of the employees working in the export companies. However, the effect of the export credit insurance can't be ignored. It provides the insurance not only to the general business risks, but also to the political risks which the private insurance companies don't like to cover. Export credit insurance can give the enterprise the guarantee for its liabilities, the more flexible ways of transaction to expend its market. Moreover, it can provide the guarantee for the credit from banks. Therefore, we should develop the system of export credit insurance of our country, letting it give the full use to the exports.