MNI POLICY: China Urges Insurance Loans to Help Trade SMEs

     BEIJING (MNI) - China will strengthen co-operations among the government,

banks and insurance companies to expand insurance policy-backed financing to

help SMEs involved in foreign trade obtain loans, spokesman Gao Feng of the

Ministry of Commerce said at a briefing on Thursday.

     The China Export & Credit Insurance Corp. should increase risk tolerance,

reduce premiums, optimize settlement service, and help SMEs to reduce losses,

said Gao.

     Here are other key points of the press conference:

     - MOFCOM survey of more than 8,200 foreign companies in China showed 76.6%

resumed about 70% of their capacities, a gain of 2.5 percentage points from last

week, said Gao.

     - The U.S. is discriminating against Chinese SOEs, which will hurt Chinese

investment in America, and damage other companies' confidence of investing

there, said Gao, when asked to comment the U.S. threatening to withdraw the

licences of two Chinese telecommunication giants. The U.S. government should

stop using its power to suppress companies' lawful operations, Gao said.

     - China and the EU agreed on the negotiation arrangement for an investment

agreement with a monthly meeting planned, said Gao.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

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