US CASES SEND CHINA EXPORT & CREDIT INSURANCE CLAIMS SOARING

An increase in cases involving the US led to claims to the China Export & Credit Insurance Corporation more than doubling year-on-year in the first half of 2008. Over that period, the credit insurance agency saw 936 export credit insurance claim cases involving $234 million. That figure represented a 108% increase on the previous year and included 202 cases related to the US market, itself a 31.2% increase on the first half of 2007. The value of US cases was up even further – to $105m, an increase of 235.6% - and represented nearly half the total value. According to local reports, payments in arrears made up the lion’s share of the total, representing around 84%, and indicating that purchasers' delay in payment has become a major risk for the foreign currency revenue in China's export sector. The figures also demonstrate the extent to which the US sub prime mortgage crisis is impacting the Chinese economy and the number and value of claims seen by China Export & Credit Insurance.