Two Chinese provinces use state blockchain platform for export credit insurance worth US$3.27B

Chinese central bank branches in Fujian and Guangxi provinces have announced that their provinces did US$2.4 billion and US$875 million, respectively, of blockchain-based export credit insurance financing for the first half of 2021.

Fast facts

• Fujian Province struck a total of 6,516 insurance deals, and Guangxi Province saw 166 enterprises participate.

• On May 17, the Chinese State Administration of Foreign Exchange announced a pilot state-run blockchain platform program for export credit insurance. The blockchain platform allows information sharing among banks, insurance agencies, government departments and enterprises to improve the verification of trade documents.

• Export credit insurance covers exporters’ potential losses due to commercial or political developments. In China, it is held by the government for promoting the export sector.  

• In July, the central bank’s Chongqing branch said the city had handled a total of eight insurance financing deals using the blockchain platform, with a value of US$1.2 million, as of the end of June. The provinces of Jiangsu, Zhejiang, Shandong, Jiangxi, Gansu, Heilongjiang and Sichuan have all launched export credit insurance programs using the blockchain platform this year.