Shandong Zhucheng Foreign Trade Group Corporation (Zhucheng Foreign Trade), a leading poultry meat exporter, has received compensation of US$760,000 from China Export & Credit Insurance Corporation (CECIC).
According to a principal from Zhucheng Foreign Trade, the compensation offset its loss of US$1.33 million caused by Japan's refusal to import Zhucheng Foreign Trade's poultry meat. It took less than two months for Zhucheng Foreign Trade to obtain the first compensation payment of US$400,000 after they applied to CECIC.
In 2001, with China's entry to WTO, China's Ministry of Finance appropriated RMB4 billion to establish CECIC, a policy-related insurance company, to reduce export-trading risk. Zhucheng Foreign Trade’s compensation was covered by a credit insurance premium of US$100,000, making it the first farm produce export enterprise to reduce risk through export & credit insurance.
Source: SinoCast
