Dongguan, a major foreign trade city, will invest 100 million yuan to expand export credit insurance subsidies

10/06/2020

China News Service, Dongguan, June 10 Li Yingmin Li learned from the information Office of Dongguan Municipal Government of Guangdong on October 10 that dongguan will invest 100 million yuan (RMB) to expand export credit and insurance subsidies to stabilize foreign trade.

At present, dongguan city in 2020 the first batch of foreign trade enterprises to declare support special funds have been allocated to expand export credit insurance project, covering electronic information, clothing, furniture, intelligent manufacturing and other industries, the dongguan 101 electronics co., LTD., dongguan Dali sheng fashion co., LTD., dongguan city bay shore shoes industry co., LTD., 19 companies, such as export corporation special funds totaling $4.2 million.

Since the beginning of this year, due to the impact of the global COVID-19 epidemic, global trade risks have increased and payment defaults have occurred from time to time. Expanding export credit insurance subsidies and encouraging enterprises to actively insure export credit insurance will help reduce the operating risks of foreign trade enterprises.

Dongguan has set up a "5 billion yuan special fund plan" to invest financial funds in key areas and promote economic stability and development. To stabilize foreign trade exports, 100 million yuan will be invested in expanding export credit insurance subsidies. The subsidy is mainly aimed at the enterprises in Dongguan city who buy short-term export credit insurance and credit investigation services from the insurance companies approved by the state to engage in export credit insurance business.

In terms of support standards, support shall be given to enterprises that insure short-term export credit insurance according to 50% of the premium actually paid by the enterprises.

At the same time, the enterprises that purchase credit investigation services of export credit insurance companies to explore the international market shall be supported by 80% of the credit fee actually paid, and the accumulative total of a single enterprise shall not exceed 200,000 yuan per year. (after)