Chinese exporters urged to improve insurance awareness
(Xinhua)
Updated: 2004-05-13 12:21

Chinese exporters of farm produce were urged Wednesday to have their 16 billion US dollars worth of agricultural products covered by export credit insurance in order to minimize potential economic risks.

Liu Yongxin, deputy general manager of the China Export & Credit Insurance Co., made the remarks at a seminar sponsored by the Ministry of Commerce on expanding exports of farm produce with the help of export credit insurance.

Liu said that only about 200 out of the country's 10,000-strong exporters of farm produce have bought export credit insurance for their business deals worth of billions of dollars.

Citing an example, Liu said during the beginning of the outbreak of bird flu on the Chinese mainland, at least 100 exporters of bird products suffered huge losses when their exports were halted, and only eight of them had bought export credit insurance and received compensation from the insurance firm.

The China Export & Credit Insurance Co., the country's first policy-oriented export credit insurance firm, was set up in late 2001, shortly after China joined the World Trade Organization.

To prevent risks facing the country's exporters of farm produce, Liu said the company will strive to increase the coverage of their insurance over the agricultural sector, and offer financing assistance to those exporters which are short of capital.

China exported 15.9 billion US dollars worth of farm produce, excluding aquatic products in 2003, and only 2.5 percent was covered by export credit insurance.