SINOSURE gives full play to the role of insurance to stabilize foreign trade

Photo taken on May 1, 2022 shows a container vessel docking at the Qianwan Container Terminal in Qingdao, east China's Shandong Province. (Xinhua/Li Ziheng)

Against the headwinds from COVID-19 resurgences and external complexity, China's efforts are underway to stabilize and upgrade foreign trade, a key underpinning for the economy.

The latest data showed a feeble April growth of only 0.1 percent in the total exports and imports, indicating that the country's foreign trade firms are under strain.

To help foreign trade navigate the trough, a guideline was released by the country's cabinet earlier this week, specifying 13 targeted measures toward this end. It requires enhanced services for key foreign trade enterprises and unimpeded cargo logistics.

Apart from increasing fiscal and financial support for foreign trade enterprises, the country will also seek to bolster cross-border e-commerce, it says.

As foreign trade firms seek opportunities globally, the guideline details measures to better protect them from risks, calling on financial institutions to expand the coverage of export credit insurance for small and micro exporters.

Bai Ming, a researcher with the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, compared such insurance to an "escort" for enterprises sailing into overseas markets. "Targeted efforts are needed to reduce insurance costs on small and micro foreign trade firms, and improve services for claim settlement," Bai said.