China’s vice-minister of commerce Yu Guangzhou has revealed that the central government is considering offering increased support to export credit insurance on farm produce.
Yu said the central government is looking at raising the share of government funding to the premium.
The central government currently covers 20 per cent of the premium for agricultural export credit insurance, compared to between 50 and 80 per cent in developed countries, Yu said.
This small amount means export credit insurance cannot be used to its fullest extent. It is widely used throughout the world to support exports, Yu said.
Chinese farm produce exporters are being encouraged to use more export credit insurance to offset risks, especially increasing losses caused by technical barriers to trade.
