(Yicai) Dec. 17 -- China is set to enhance its trade credit insurance support system to accelerate integrated reforms in domestic and foreign trade.

Government agencies, including the National Development and Reform Committee, finance and commerce ministries, as well as the National Administration of Financial Regulation, recently introduced opinions on advancing protection for trade businesses against client non-payment, the NDRC website showed yesterday.

Financial regulators will support insurers in raising awareness and developing more diverse and innovative products, according to officials. They will also consider incorporating trade credit insurance into company performance evaluations.

The regulators will prioritize protecting trade companies and increasing service efforts in key industries, regions, and firms, with special emphasis on private, micro, small, and medium-sized enterprises.

Moreover, regulators will push insurers to increase resource allocation, optimize insurance claims settlement, explore collaborative insurance mechanisms that allow a single company to be insured by multiple insurers, and enhance reinsurance support.

China's commerce department will facilitate connections between insurers and domestic and international trade firms. The department will guide firms to understand the positive role of trade credit insurance and increase their willingness to participate. Government agencies will also encourage qualified regions to support local insurers in adopting market-oriented approaches and implement pilot programs in export-focused provinces.

The document outlines various policies and measures to address existing challenges, guided by government direction and market dynamics. These measures aim to strengthen underwriting capabilities, diversify product supply, optimize fee structures, and increase promotion and support.

These measures will support China's ambition to become a trade powerhouse, effectively promoting the integrated development of domestic and foreign trade and enhancing trade credit insurance providers' ability to serve the real economy.

Editor: Emmi Laine