Chinese exporters of farm produce were urged today (May 12) to have their US$16bn worth of agricultural products covered by export credit insurance in order to minimise 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 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. Only eight of them had bought export credit insurance and received compensation from the insurance firm.
