Core Insights - The article discusses the opportunities and risks associated with emerging markets, particularly in the context of the 138th Canton Fair, highlighting the importance of compliance in international trade [1][3]. Trade and Investment Trends - In the first three quarters of 2025, China's imports and exports to Belt and Road Initiative countries reached 17.37 trillion yuan, a growth of 6.2%, accounting for 51.7% of total trade, an increase of 1.1 percentage points [1]. - Chinese enterprises are increasingly focusing on emerging markets, with a significant portion of foreign investments directed towards manufacturing and Belt and Road countries [3]. Risks in Emerging Markets - The overall credit risk for small and medium-sized foreign trade enterprises in China has been on the rise, with an average annual increase of 7.2% in the risk index over the past three years [4]. - Trade protectionism and rising payment risks are contributing to increased uncertainty in the global trade environment, with a 7.4% rise in the overall index reflecting these challenges [4][5]. Sector-Specific Challenges - Labor-intensive industries like textiles and light manufacturing face challenges from trade barriers and raw material cost fluctuations, while technology-intensive sectors like electronics and new energy vehicles contend with rising compliance costs and intense competition [4]. Currency and Regulatory Risks - Emerging market currencies often exhibit high volatility, with examples like the Turkish lira showing daily fluctuations exceeding 10% [6]. - Companies expanding into emerging markets must navigate local tax laws and potential permanent establishment risks, as well as currency mismatch issues [6][7]. Compliance and Legal Considerations - Companies must prioritize compliance with local environmental regulations and intellectual property protections to avoid significant penalties and operational disruptions [7][9]. - Establishing a knowledge protection strategy is crucial, including proactive measures against trademark registration issues and leveraging technology for risk management [9]. Strategic Recommendations - Enterprises are advised to conduct thorough compliance planning before entering new markets, focusing on tax compliance and risk management [8]. - Utilizing financial instruments for currency hedging and establishing a robust environmental compliance framework are essential for mitigating risks in emerging markets [8][9].

Core Insights - The core viewpoint of the news is that China's export credit insurance has seen significant growth in the first five months of the year, indicating a robust support system for small and medium-sized enterprises (SMEs) in international trade [1] Group 1: Export Credit Insurance Performance - From January to May, the short-term export credit insurance coverage by China Export Credit Insurance Corporation reached nearly $400 billion, representing a year-on-year growth of 14.6% [1] - The export penetration rate reached 26.9%, highlighting the effectiveness of the insurance in supporting enterprises to secure orders and mitigate risks [1] Group 2: Risk Index for SMEs - The "2025 China SME Foreign Trade Enterprise Export Risk Index" was released, showing a continuous increase in overall credit risk faced by SMEs in foreign trade over the past three years, with an average annual increase of 7.2% in the composite risk index score [1] Group 3: Digital Financial Services Initiatives - From April to August, the company is implementing three major initiatives focused on digital services to enhance support for SMEs, aiming to provide more accessible and effective financial support for enterprises venturing into international markets [1]