China Export & Credit Insurance Corp., founded in 2001,

Beijing Review: As we know, your company has done much to carry out the national strategy of developing a diversified market system and support Chinese enterprises to explore emerging markets abroad. So, how do you see your company's business in this regard?

Tang Ruoxi: The United States, Japan and the European Union are China's traditional markets. But in recent years we've explored a number of new markets. Our company has long served the country's strategy of developing a diversified market system, ever since its establishment in 2001. We are highly engaged in searching for business opportunities for our clients and assisting them to avoid political and financial risks. We help our clients to expand their exports to new markets, including ASEAN, India, Brazil and Russia. Exports from enterprises with our aid to the new markets reached $15.29 billion in 2006, an increase of over 30 times compared with the figure four years ago. From 2002 to 2006, China's exports to the new markets rose from $28.13 billion to $102.94 billion, a robust growth of $74.81 billion. During the same period, exports of our clients supported by credit insurance to the new markets increased about $14.71 billion, accounting for 13.1 percent of the country's total increased exports to the new markets. Our business service has no doubt enhanced the development of China's diversified export markets.

China's current booming export markets include ASEAN, India, Brazil and Russia. Those countries and regions have become really hot for domestic exporters in recent years. To cater to an ever-expanding export market, Sinosure constantly updates our products and provides comprehensive services in accordance with national policies. In 2006, our short-term credit insurance for exports to ASEAN countries, India, Brazil and Russia reached $1.11 billion, $533 million, $320 million and $180 million respectively, a year-on-year increase of 59.5 percent, 6 percent, 50.5 percent and 85.1 percent.

Take Russia for example. Our services for exports to the country cover ordinary trade, project contracting and direct investments, with focus on the export of automobiles, household electrical appliances and electromechanical products. Statistics show that our business for exports to Russia stood at $6.94 million in 2002, while in 2006 it topped $200 million, an increase of three times in the four years. Sinosure had a 60-percent average annual increase in short-term credit insurance services for exports to Russia in the last five years. At the beginning of 2007, Sinosure provided services for the co-invested Baltic-Pearl real estate project in St. Petersburg for five Shanghai-based companies, led by Shanghai Industrial Investment (Holdings) Co. Ltd. The $1.3-billion project, the biggest deal between China and Russia, helped enhance bilateral trade and economic relations.

How does your company develop new products in the booming market? How effective have these products been?

We have our targeted businesses in the booming market. In 2003, we developed two kinds of short-term credit insurance products for contracted projects overseas. Usually such a contract lasts less than three years. The products fill market vacancies of credit insurance for short-term contracted projects abroad, as well as for middle- and long-term projects but with a small amount of investment. Those products are especially favored by telecommunication, energy and other high-tech industries at home.

Having benefited from our new credit insurance products, our customers increased their exports from $85 million to $620 million from 2004 to 2005. And in 2006, the figure soared to $1.04 billion, registering a year-on-year growth of 67 percent.

How has your business performed in Africa, where Chinese exports have boomed in recent years?

We pay great heed to trade and economic cooperation between China and African countries. We take Africa as a key market and provide comprehensive financial services, including risk management, loss remedy, financing and credibility assessment. By the end of 2006, we had provided insurance services to $5.4 billion worth of exports of goods and financial products to African countries and to $630 million investments in energy and mineral exploration in seven African countries. In 2006, exports from our client to African countries accounted for 7.6 percent of the country's total exports to the region, 0.6 percent higher than the average level over the past few years.

We have also launched a series of market investigations to evaluate the risks of export programs from our country to Africa. In the meantime, we have engaged in facilitating communication and cooperation between the People's Bank of China and the African Development Bank, the West African Development Bank and the Eastern and Southern African Trade and Development Bank (PTA Bank). We have also signed a memorandum with the African Trade Insurance Agency (ATI). At the beginning of this year, Sinosure cooperated with Standard Charted Bank to hold a forum in South Africa on financing the trade in Africa.

In the last five years, we have been actively involved in Chinese exports to Africa, including capital goods export, project contracting and direct investment. We have made an effort to promote business and diplomatic cooperation between China and African countries, playing an irreplaceable role in enhancing friendship between the two sides.

How does your company share the risk for domestic companies doing business in Africa?

For many reasons, Africa rates high for its risk to foreign investments. So for many years, the region had not been an ideal place for foreign investment. There are two major risks in Africa: first, the financial risk, which includes price changes, market fluctuations and unsteady supply chains; and second, the political risk, like wars, legal disputes and limits on currency exchange. However, nowadays, Africa has improved its investment environment, and the risks are declining. According to an assessment from African Bank, the investment risk level of most African countries is down to Level B, a middle level risk, while there are only a few countries featuring high-level risks: Level 2B or Level 3B.