Sinosure and the Ministry of Commerce jointly released the Notice on the Support to the Development of Well-Known Export Brands by Using Export Credit Insurance and the Notice on the Support to the Independent Export Enterprises to Develop International Business by Using Export Credit Insurance in 2005 and 2006, respectively. The Notice on the Support to the Development of Export Brands by Using Export Credit Insurance was also released by Sinosure and the China Chamber of Commerce for Import and Export of Machinery and Electric Products in 2006. The three notices explicitly proposed how to support the export of independent brands, which created favorable conditions for the export and overseas development of Chinese enterprises that have independent brands.

Since its establishment, Sinosure has vigorously supported the export of independent brands and made remarkable achievements. In 2005, Sinosure supported 93 Chinese enterprises that have independent brands to conduct their export business, and their combined export volume reached $3.18 billion. In 2006, the export volume of the supported 97 enterprises amounted to $4.43 billion, which witnessed an increase of 39 percent more than the same period of 2005. In the first half of 2007, Sinosure supported 190 well-known Chinese enterprises and their export volume came to $2.93 billion.

What efforts has your corporation made in assisting domestic enterprises to penetrate the international market and enhance their independent brand status?

In order to support Chinese brands in the international market and make sure that the exporters can have a sustainable and healthy development, Sinosure has taken the following steps:

First, adopting flexible trade measures to improve the competitiveness of the enterprises. After exporters take insurance in Sinosure, the settlement of accounts is no longer limited to a letter of credit, so the export enterprises can accept orders of goods, seize their trade opportunities, improve their competitiveness and enlarge their export scale. In 2006, by using short-term insurance, Sinosure helped well-known brands realize an export volume of $4.19 billion, with an increase of 52.4 percent year on year; the overseas investment of well-known enterprises supported by Sinosure reached $110 million, which was 25 times that of 2005.

Second, providing financing convenience to alleviate capital shortages of well-known enterprises. Along with the acceleration of the competition among export enterprises, the deadline of foreign exchange settlement was extended accordingly. As a result, the enterprises need to raise financing capabilities. With support from Sinosure, they get funds through banks in advance, so as to solve the capital shortage problem. Last year, export enterprises got $340 million this way, which remarkably alleviated their financing problems.

Third, improving risk management abilities to help export enterprises reinforce their debt management. The export credit insurance can penetrate every aspect of the trade procedures of enterprises, providing them with effective support. In the stage of negotiation and treaty signing, export enterprises can choose buyers according to the credit evaluation service provided by Sinosure, get trade treaties and professional advice on the design of a financing plan. After the delivery of the goods, Sinosure will carry out real-time tracking of the management conditions and financial conditions of main buyers. Once there is a risk, Sinosure will inform exporters to take corresponding measures; if there is a loss, Sinosure will pay an indemnity to the exporters.

Fourth, using an insurance compensatory function to ensure the sustainable development of famous enterprises. As the most direct and effective tool to avoid risks, credit insurance can provide the Chinese export enterprises, especially those with well-known independent enterprises, with effective guarantees for their sustainable development. Under the premise of continually improving technical levels and with the help of credit insurance, the enterprises can strengthen their negotiating capabilities over a short period, improve their market development and risk management levels and further improve their competitiveness, so as to shake off the constraints of the low value-trade pattern, and switch to high value-added production and trade with independent brands.

How will Sinosure continue to support the international presence of China's independent brands in the future?

At present, the support for independent brands by export credit insurance is developing in many directions. Sinosure will actively provide exporting enterprises with overseas investment insurance, domestic credit insurance, flexible premium rates and compensation arrangements. It will also expand the risk management chain for export enterprises with independent brands; provide market risk analysis reports, risk management advice, domestic trade credit insurance and other services; and help exporters establish and make use of the credit risk management mechanism. Sinosure will continue to display its supporting role, share risks with Chinese export enterprises and make even bigger contributions toward the transformation of China's foreign trade growth mode and the improvement of foreign trade quality.