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Insurers help protect 300,000 export jobs

EXPORT credit insurance has helped boost exports of US$2 billion in Shanghai this year and the city will increase insurance coverage to support its exports in 2010, said the head of Shanghai Commission of Commerce today.

The insurance, offered by China Export & Credit Insurance Corp, has helped secure or create 300,000 jobs and boosted the tax income of Shanghai by 200 million yuan (US$29.3 million), said Sha Hailin, chairman of the commission, in a briefing today.

Shanghai will increase insurance penetration especially for small and medium exporters and those with advanced manufacturing facilities, he said.

The insurer, also known as Sinosure, has helped secure the growth of China's export sector, which has been hit hard by the global financial crisis. Its coverage on China's exports sat at US$84 billion, of which US$5.9 billion was in Shanghai.

Exporters buy an export credit policy from the insurer to cover the risk of buyers defaulting. If the buyer defaults, the insurer pays compensation to the exporters.

Huang Qin, president and general manager of Shanghai New Union Textra Import & Export Co, said the textile exporter has increased its insurance coverage in this difficult market.

Huang said she expected a still difficult year in 2010 as external demand recovered slowly.

In November, Shanghai's exports fell at a slower pace of 5.3 percent from a year earlier to US$13.4 billion. The drop eased from a decline of 10.7 percent in October.





 

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