"Doing business in Yiwu means always feeling the care and support of the government and financial institutions, especially in critical moments. The PICC staff told me I’ll receive compensation this month—finally, the weight on my shoulders is lifting."

Recently, Zhao Yan, a merchant at the Yiwu International Trade Market, signed the compensation agreement after verifying the details, recovering nearly 60,000 yuan in losses. He praised the Market Procurement Trade Credit Insurance Policy (known locally as "Merchant Credit Protection"), calling it an invaluable safeguard.

Zhao Yan shared that she operates a business at the Yiwu International Trade Market, selling a variety of small commodities such as toys and safety equipment, with 95% of her orders coming from overseas clients. Over the years, the rhythmic beats of Yiwu’s traditional "Bolanggu" (wave drum) have symbolized the city’s exports reaching global markets. However, in the past, when foreign buyers defaulted on payments, recovering debts across borders seemed nearly impossible, often forcing merchants to write off losses.

This changed when the local government identified this critical pain point and became the first in China to introduce a government-backed trade credit insurance program for market procurement trade. Today, thanks to the "Merchant Credit Protection" policy, more and more Yiwu exporters like Zhao are recovering lost payments—restoring their confidence in global trade.

A Small Policy, A Global Shield for Yiwu's Merchants

This compact insurance certificate has become a vital "protective talisman" for small commodity exports. The "Merchant Credit Protection" program, as reported, is China's first exclusive credit insurance tailored for market procurement exports. Launched in 2020 through collaboration between the Yiwu Commerce Bureau and PICC Yiwu, it has undergone multiple upgrades to effectively address the risk management challenges of "multi-category, multi-batch, small-volume" exports.

Five Years of Evolution: Stronger Protection, Faster Claims

Over the past five years, the program has continuously enhanced its coverage while improving claim settlement speed and digital transformation, significantly boosting policy benefits for Yiwu's exporters. Key milestones include:

• Increased Coverage Limits:

  • Initial: $80,000 per buyer (30% compensation rate)

  • Current: $150,000 per buyer (45% compensation rate)

  • Whitelisted Companies: 80% compensation rate for approved exporters

• Impactful Results (2024 Data):

  • Total Risk Coverage: 1.66 trillion yuan

  • Cases Processed: 219 market procurement claims

  • Losses Reported: Over 80 million yuan

  • Recovered Losses: 33 million yuan

Digital Convenience: Zero-Run Insurance & Fast Claims

Leveraging Yiwu’s Market Procurement Trade Information Platform, eligible trade orders can now secure coverage online. When payment defaults occur, merchants enjoy:

• "Zero Visits" Policy Enrollment

• "Fast-Track" Claims with complete documentation
  This innovation tackles the long-standing dilemma of "wanting orders but fearing risks" among small exporters.

Beyond Protection: Building Risk Management Awareness

The program has not only mitigated risks but also strengthened exporters' compliance practices. As Zhao Yan noted:
"During the claims process, we submitted orders, customs records, and communication logs—now we systematically document every transaction."

Future Vision: Accelerating Support for Global Trade

Chen Xulong, Deputy Manager of PICC Yiwu, emphasized:
"We will further expedite claims processing and develop new insurance solutions to empower exporters. Our mission is to translate the government’s unwavering support into robust safeguards, helping Yiwu’s new generation of ‘wave drum’ merchants thrive worldwide."