Whether Export Credit Insurance Promotes Export Trade?

Having entered the WTO in 2001, China’s export is facing continuous and intense competition and challenges. Since western countries fell into slow or even negative economic growth after the financial crisis broke out, Chinese exporters are facing difficulties caused by two kinds of risk, one of which is the political risk from western countries who want to win the trading game by trade protectionism, and the other one of which is commercial risk from poor countries with giant default probability. The two kinds of risk keep Chinese exporter from foreign trade orders. In order to safeguard the exchange earnings environment and swap risk, learning from the western developed countries, China found the export credit insurance institution in 2001, which had been the fourth policy-based financial institution. It proved that China would support export by export credit insurance. Thus, it is important to analyze whether the company has played a good role since founded.The paper firstly introduces export credit insurance and related literatures. Then it describes the growth of export credit insurance in both China and foreign countries, especially in Jiangsu Province. Then we get a model to logically prove the positive effect of export credit insurance to export development. At last we come up with some problems with the domestic export credit insurance, mainly the lack of outlets, and the possibility of being a commercial institution. The writer answered the questions in the last chapter:1. Creating different underwriting types; 2. Introducing market mechanism to shorted-term export credit insurance, while keep project credit insurance government supported. Also, solutions will be provided to solve problems of innovation, improving and amplify its coverage.So far, the problem to support "One Belt and Silk Road" and get used to the new normal with export credit insurance has been settled.