Escorting Foreign Trade in Ningbo

In August, 2002, China Export & Credit Insurance Corporation officially located in Ningbo, making itself a powerful escort of foreign trade in Ningbo. By the end of 2016, some 104.8 billion US dollars have been distributed by Ningbo Branch of China Export & Credit Insurance Corporation to support the export industry in Ningbo, an average annual growth of 50 percent, with the penetration rate (the proportion of insurance value of the general export volume) rising considerably to the current 33.5 percent from 0.5 percent at the very beginning. In other words, the support from China Export & Credit Insurance Corporation has currently been extended to one third of export companies in Ningbo. Different from general property insurance, EIC (export insurance credit) mainly covers political and commercial risks related to cross-border trade, international investment and overseas engineering contracting. Since EIC covers the risks of contract breach and bankruptcy of overseas buyers and banks, the risks concerned with the sovereign credit of a foreign government, and various political risks including war, levy and restrictions on transfer and conversion, it not only tests the business capacity of an insurance organization, but also the ability of a state to protect the overseas interests of its domestic enterprises. Bearing in its mind the historic mission of meeting the demand of major national strategies, the Ningbo Branch of China Export & Credit Insurance Corporation has spared no efforts to support the sound development of foreign trade in Ningbo by following the political guidance of relevant functional departments, sticking to its not-for-profit policy and striving for preferential policies from its headquarter. The outbreak of the 2009 global financial crisis has led to frequent occurrence of contract breach of foreign buyers. To safeguard the interests of Ningbo foreign trade enterprises, the corporation has considerably expanded its insurance coverage, with its insurance amount successively hitting 5 billion US dollars, 10 billion US dollars, 15 billion US dollars and a striking 17.8 billion US dollars in the year of 2016, securing the collection of foreign exchange and strengthening the confidence of Ningbo export companies, thereby ensuring the sound development of foreign trade in Ningbo. Know yourself and know your enemy, and you can win every war. To conduct an authoritative credit survey and get to know the real information of buyers will help enterprises win new customers, get an insight into the market and prevent risks. With the help of its wide-spread credit survey network and a well-established research center of country risk, China Export & Credit Insurance Corporation provides domestic foreign trade enterprises thorough information concerning the business operation conditions, economic capacity, record of contract breach of overseas buyers and the political and military risks, thereby letting them have a better understanding of their overseas business partners. During the recent years, the Ningbo branch provides 1000-plus credit survey service for on a monthly basis. Besides, to shorten the period of exchange collection and release tiedup capital foreign trade companies, the Ningbo Branch of China Export & Credit Insurance Corporation has actively expanded its cooperation with banks in order to upgrade the credit rating of companies to raise their credit limit, helping export companies finance nearly RMB 50 billion Yuan, the amount of which in 2016 stood at RMB 6 billion Yuan. Since China's entry into the WTO 15 years ago, China Export & Credit Insurance Corporation has accompanied Ningbo foreign trade companies strive for a share of overseas market and extend great support to their business upgrading and restructuring. In the future, as Ningbo will soon develop a state-level insurance innovation comprehensive pilot area, the Ningbo branch will, centering around the One Belt and One Road initiative, grasp this opportunity and lend full support to accelerate the upgrading of foreign trade industry in Ningbo.

LINK:	http://en.nbwh.gov.cn/art/2017/1/19/art_1325_92419.html...
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