The Ministry of Commerce and other departments will further help foreign trade enterprises enhance their ability to avoid risks

Gao Feng, a spokesman for the Ministry of Commerce, said on the 24th that the Ministry of Commerce will work with relevant departments to promote financial institutions to enrich and improve their hedging business, and further help foreign trade enterprises enhance their hedging ability and better stabilize the development of foreign trade by strengthening export credit insurance.
Recently, the Ministry of Commerce and China Export Credit Insurance Corporation jointly issued a notice, pointing out that export credit insurance should be taken as a strong starting point for stabilizing foreign trade. Gaofeng said at a regular online press conference held on the same day that export credit insurance is an internationally accepted means of trade promotion in line with WTO rules and has played an important role in stabilizing foreign trade and foreign investment. At present, there are still many uncertain and unstable factors facing the development of China's foreign trade. The Ministry of Commerce, together with China Export Credit Insurance Corporation, will study and issue targeted support measures in combination with the actual situation of various regions, so as to provide more targeted risk protection for foreign trade enterprises.

Specifically, we will strengthen the service support of export credit insurance for small, medium-sized and micro enterprises, expand the coverage of small, medium-sized and micro foreign trade enterprises, reduce the insurance cost of small, medium-sized and micro enterprises, and optimize the service measures of claim settlement and recovery; Increase underwriting support for new foreign trade formats such as cross-border e-commerce and overseas warehouses, strengthen product model innovation, and provide personalized service solutions for enterprises.

In addition, it will also increase the underwriting scale of the industrial chain, deepen the precise service in the subdivided fields of the industrial chain, and promote the integrated development of domestic and foreign trade; We will continue to strengthen the financing of short-term insurance policies, accurately support small, medium-sized and micro foreign trade enterprises through "government + Bank + insurance" and "refinancing + policy financing", give full play to the credit enhancement role of insurance policies and alleviate the financing difficulties of enterprises.
It is reported that in recent years, in view of the increase in the two-way fluctuation of the RMB exchange rate, the Ministry of Commerce, together with relevant departments, has helped enterprises effectively improve their awareness and ability of exchange rate hedging by strengthening policy publicity, compiling risk avoidance manuals, publishing open courses and promoting financial institutions to optimize products and services. According to the statistics of the State Administration of foreign exchange, the hedging ratio of enterprises increased by 4.6 percentage points year-on-year in 2021, indicating that enterprises' awareness of exchange rate hedging is gradually increasing.
Gaofeng said that in the next step, the Ministry of Commerce will continue to work with relevant departments to further promote financial institutions to enrich and improve their hedging business, optimize the RMB cross-border trade settlement environment, help enterprises better adapt to the normal two-way fluctuation of RMB exchange rate and continuously improve their risk resistance.