China Export and Credit score Insurance coverage Company (Sinosure), a state-owned policy-oriented insurer, has recognized 61 international locations as presenting excessive dangers for Chinese language enterprises investing abroad. One other 93 international locations are thought of medium threat for funding, and 38 international locations are low threat.
Sinosure says in its Handbook of Nation Threat 2020, launched final week that sovereign credit score threat ranges are additionally rising globally, with 32 international locations deemed excessive threat and 83 thought of medium-level dangers. Seventeen nations have seen occurrences of precise threat occasions for corporations.
The annual report has served as a reference for Chinese language corporations looking for to speculate overseas since 2005, reported China Day by day.
The export credit score insurer additionally says that the COVID-19 pandemic, alongside the rising world political and financial uncertainties seen this 12 months, means Chinese language corporations face excessive dangers when trying to make investments abroad.
For the reason that outbreak of the pandemic, geopolitical turmoil the world over has intensified and world political instabilities have elevated, stated Mr Cai Xiliang, vice chairman of Sinosure, including that world industrial chains and provide chains have additionally been tremendously affected.
In opposition to the backdrop of a worldwide financial recession, intensified worldwide commerce frictions and fierce industrial competitors, the dangers of chapter for enterprises have change into extra distinguished. Some corporations within the retail, car, and oil and gasoline sectors have been dealing with working pressures since 2019.
“The epidemic has then tremendously elevated the chance of chapter of many enterprises this 12 months,” he stated. “The chance of worldwide enterprises going chapter will proceed to rise sooner or later because the pandemic continues to ravage the worldwide financial system.”
Mr Cai stated the quantity of insurance coverage cowl which Sinosure had supplied to Chinese language corporations from January to October was $564.8bn, 13% greater than for a similar interval final 12 months. It has supplied insurance coverage providers to round 143,000 Chinese language enterprises, up 27% year-on-year.