Policy based export credit insurance supports the joint construction of the "Belt and Road" with fruitful results

Not long ago, the China Export and Credit Insurance Corporation (hereinafter referred to as "China Sinosure") launched new underwriting support for the Sino White Industrial Park capital increase project. Previously, Sinosure had insured the investment project of Zhongbai Industrial Park for 40 million US dollars.

Back ten years ago, when the "Belt and Road" initiative was put forward in 2013, SINOSURE signed a memorandum of cooperation with the China Belarus Industrial Park Management Committee and China Belarus Industrial Park Development Co., Ltd. In the past ten years, China Belarus Industrial Park has become the largest overseas industrial park in China, attracting enterprises from 16 countries. This is just a microcosm of China Sinosure's support for jointly building the "Belt and Road".

Looking back over the past ten years, with the joint construction of the "Belt and Road" from ramming the foundation and erecting the beams with columns to taking root and bearing fruit, China Sinosure accurately seized the historical opportunity, adhered to the principle of joint consultation, joint construction and sharing, fully served the high-quality development of the "Belt and Road", and supported the export and investment of more than 1.9 trillion dollars to countries jointly building the "Belt and Road", A series of solid and profound achievements have been achieved.

Jointly discuss and expand the circle of friends

In May this year, just after the conclusion of the China China Asia Summit, China Export&Credit Insurance Corporation signed the Memorandum of Understanding on Cooperation with the Asaka Bank of Uzbekistan and the Development Bank of Kazakhstan. The two contracts reflect the infinite cooperation prospect.

High standards, sustainability and benefiting people's livelihood - under the same goal, through the continuous deepening of policy communication, China Sinosure's circle of friends on the "Belt and Road" has been expanding and cooperation has become increasingly close. In the past ten years, Sinosure has signed cooperation agreements with government departments, financial institutions and peer institutions in more than 40 countries.

The "circle of friends" continues to expand, and CITIC will continue to transform its conceptual identity into practical achievements.

At the previous two "Belt and Road" International Cooperation Summit Forums, 18 cooperation agreements signed between China Sinosure and co construction countries or financial institutions were included in the list of achievements. Moreover, many achievements list items related to China Sinosure are particularly interesting.

In Nigeria, Lekki Port, invested and operated by China Harbor, officially opened at the beginning of this year. In 2021 and 2022, China Export&Credit Insurance Corporation issued overseas investment insurance policies for its equity and creditor's rights, with a total underwriting amount of nearly 900 million dollars.

In Serbia, after Sinosure supported HBIS to complete the acquisition project of Serbia's Smederevo Steel Plant, it assumed more than 60% of the insurance liability of the enterprise from the Serbian Export and Credit Insurance Agency in the form of reinsurance ceding.

In Cambodia, Sinosure not only supported Hongdou Group to invest in Sihanouk Port Special Economic Zone with overseas investment insurance, but also innovatively issued the first RMB export buyer's credit policy in China to support infrastructure construction such as power plants in the special economic zone.

At the same time, in recent years, in terms of the comprehensive integration of local services into the joint construction of the "Belt and Road", China Sinosure has carried out practical innovation in combination with the characteristics and advantages of each place, and promoted the formation of a wider range, broader fields and deeper level of opening up.

In Zhejiang, a demonstration area of common prosperity, China Export&Credit Insurance Corporation supported enterprises in this province to cooperate with countries jointly building the "Belt and Road" in advanced manufacturing, cross-border e-commerce, infrastructure, overseas parks and other fields, and supported Zhejiang enterprises to export and invest more than 270 billion dollars in countries jointly building the "Belt and Road" in the past decade. In Guangxi, the only province connected to ASEAN by land and sea in China, China Export&Credit Insurance Corporation issued special policies to focus on the construction of key infrastructure of ports and airports in ASEAN countries, and support Liugong, Yak International, Beibu Gulf ports and other well-known enterprises to "go global". In Shandong, where the Shanghai Cooperation Demonstration Zone is located, SINOSURE provides overseas asset protection for enterprises in the province to participate in international production capacity cooperation. In the past ten years, SINOSURE has supported 46 national overseas investment projects jointly built along the "Belt and Road", with an underwriting amount of more than $3 billion.

So far, China Sinosure has signed 41 strategic cooperation agreements with 30 local governments nationwide.

Jointly built, with brilliant new achievements

In August 2017, with the loud whistle, the first China Europe (Xiamen Moscow) train slowly drove out of the Xiamen Haicang railway freight yard, carrying a full load of goods to Moscow, Russia, becoming the first China Europe train from the Free Trade Zone in China. In 2019, in order to help operating enterprises control operational risks and further open the Russian market, Sinosure helped enterprises achieve full coverage of operational risks and export risks through short-term export credit insurance.

The non-stop Mercedes Benz China Europe Express, like a powerful artery, continuously transports "Made in China" to countries and regions jointly building the Belt and Road, which also reflects the fruitful results of Sinosure's orderly and effective promotion of policy communication, facility connectivity, smooth trade, financial integration and people to people connections with countries jointly building the Belt and Road.

In terms of policy communication, SINOSURE has participated in the preparation of more than 70 overall plans and multiple bilateral cooperation documents between China and nearly 50 countries in the past decade, promoting the integration of export credit insurance into relevant economic, trade and investment cooperation mechanisms.

In terms of facility connectivity, China Sinosure focuses on the "four in one" layout of land, sea, sky and internet, focusing on supporting the "Belt and Road" projects in the fields of railways, highways, waterways, oil and gas pipelines, transmission channels, information channels, etc., with an accumulated insurance support amount of more than 210 billion US dollars, covering Kenya Mombasa Nairobi Railway Central Asia gas pipeline and other landmark interconnection projects.

In terms of unimpeded trade, Sinosure insured nearly $1.3 trillion of countries jointly building the "Belt and Road" under short-term export credit insurance, and paid a total of $6.1 billion in compensation. In particular, during the new global epidemic, SINOSURE made positive contributions to the development of economic and trade cooperation with countries along the "Belt and Road" by expanding the coverage of export credit insurance and giving full play to the cross cyclical and counter cyclical regulatory role of policy based financial institutions.

In terms of financing, Sinosure gave full play to the financing promotion function of policy oriented export credit insurance, built a financing bridge for the joint construction of the "Belt and Road", established business cooperation with more than 240 banks, signed framework and special cooperation agreements with 39 Chinese funded banks, and guided various cooperative banks to provide financing support to export enterprises and "Belt and Road" projects.

In terms of people to people connectivity, China Export&Credit Insurance Corporation supports Chinese enterprises to build livelihood projects for the local people, effectively promoting local economic development and improving people's livelihood, laying a solid public opinion foundation for the "Belt and Road" people to people connectivity, and gaining widespread recognition from the local people.

Looking at the "Belt and Road", China Sinosure has taken a series of practical measures to make many dreams blooming on the "Belt and Road" bear fruitful results.

Sharing, open and inclusive cooperation path

To jointly build the "Belt and Road" is to pursue development and advocate win-win results. Along with the deepening and implementation of the joint construction of the "Belt and Road", SINOSURE has promoted the signing and implementation of a number of projects that cover a wide range of fields, play a big role in demonstration, and provide tangible benefits for people's livelihood. This is not only the prosperity of the "Belt and Road" initiative for the joint construction of the country, but also the new investment and trade opportunities for enterprises created by export credit insurance.

Not long ago, with the joint efforts of many parties, China Sinosure's first medium - and long-term export credit insurance project in the mineral industry - Jiangxi Copper Mexico Copper Slag Concentrator Project successfully achieved financing. The project has successfully driven the export of metallurgical equipment with independent intellectual property rights in China. It is not only a "small and beautiful" green project that uses China's advanced copper slag beneficiation technology to help the host country effectively solve the adverse environmental problems and negative social impacts caused by slag accumulation, but also an international production capacity cooperation project that turns waste into treasure and achieves win-win results.

For both parties, "the first" or "the first" means the "pioneering" of cooperation, which means that there will be more cooperation opportunities in the future. In particular, since the second "Belt and Road" International Cooperation Summit Forum, SINOSURE has started to comprehensively deepen reform, closely combined with the "Belt and Road" construction needs, accurately identified the characteristics of "small and beautiful" projects, targeted to improve and optimize products and supporting functions, continue to promote innovation in products, business models and other aspects, and keep pace with the times, Better serve and jointly build the "Belt and Road" with high quality.

In 2019, China Sinosure's first global emerging market local currency financing insurance project was launched; In 2020, China Sinosure will underwrite the first major infrastructure project implemented in PPP mode in Bangladesh; In 2021, China Sinosure will underwrite the world's first "ECA+daily tax leasing" ship financing project; In 2022, China Export&Credit Insurance Corporation will underwrite the joint investment project of project contracting and resource development for the first time

Moreover, as a "pathfinder" of expanding cooperation in the third-party market, SINOSURE promotes financing under the policy oriented export credit insurance through cooperation with overseas financial institutions to achieve complementary advantages and win-win cooperation and jointly inject new momentum into the economic development of the third country.

In Kazakhstan, the initiator of the "Belt and Road" initiative, SINOSURE Insurance Corporation of China, Deutsche Bank and other four overseas financing support Shymkent refinery upgrading projects have played an important role in the local oil product supply guarantee and made positive contributions to promoting economic development. Along the China Pakistan Economic Corridor, Pakistan Binjiasheng Phase III Combined Cycle Power Plant, which is supported by export buyer credit insurance provided by SINOSURE and Euler Hermes of Germany, will realize full load grid connection for power generation, which will greatly alleviate the shortage of local power supply, further reduce the cost of power consumption and benefit people's livelihood.

This kind of cooperation combines the advantages of Chinese enterprises in terms of production capacity and the advanced experience of enterprises in developed countries, gathers the advantages of international financial institutions, provides cost-effective energy solutions for countries along the "Belt and Road", and achieves a win-win situation.

From general trade to overseas projects, from sharing credit risks to creating trading opportunities, from maintaining the security and stability of the industrial chain supply chain to promoting green development, over the past decade, China Export&Credit Insurance Corporation has not only strongly supported the foreign economic and trade cooperation of Chinese enterprises, but also witnessed the high-quality development of jointly building the "Belt and Road". Looking ahead, how will China Sinosure continue to exert its power?

key word: The Belt and Road Initiative China exit support