Credit insurance safeguards the collection of payments for welding export enterprises.

According to statistics, in the first half of this year, China Export & Credit Insurance Corporation received a total of 963 export credit insurance claims nationwide, amounting to 234 million USD, a year-on-year increase of 108%. Among these, there were 202 claims from the United States, a year-on-year increase of 31.2%, with the claim amount increasing by 235.6% year-on-year, accounting for 44.8% of the total claim amount. Default cases accounted for 84% of the total claim amount, with buyer defaults becoming the main reason for the occurrence of collection risks. At the same time, despite a significant increase in export costs in the first half of this year, the enthusiasm of enterprises to purchase insurance has noticeably risen. The top ten policyholders of CITIC Insurance Shanghai Branch saw their insured amount increase by 25.76% year-on-year, with the insured amount for textile exports rising by 29.02% (while textile exports only increased by 7.66% year-on-year). Credit insurance is a protection provided by insurers for creditors (sellers) in trade, to avoid losses due to the debtor (buyer) being unable to repay debts or losses caused by recognized 'political' events. It has been revealed that in the first half of this year, CITIC Insurance Shanghai Branch has already shared some losses incurred by enterprises due to the subprime mortgage crisis. For example, a hardware manufacturing company in Shanghai received compensation for a claim of 755,000 USD due to an Italian buyer's non-payment; a claim of 1.48 million USD from an international trading company in Shanghai due to a U.S. buyer's default is also under investigation. The increasing risk of collection from export accounts receivable has led more and more export enterprises to actively incorporate CITIC Insurance's 'Buyer Credit Analysis Report' and 'Credit Limit Approval Results' into their internal customer relationship management processes as a basis for corporate management decisions. Experts analyze that this is due to the current situation of rising labor costs, increasing CPI, depreciation of the dollar, and the diminishing space for price reductions of China's export products, which forces trading enterprises to adopt 'flexible payment methods and transaction modes' to compensate for the gradually shrinking export advantages and enhance their competitiveness overseas.