1. Government guarantees have limitations. Projects are small or limited to domestic projects. Sovereign guarantees involve large projects, large investments, and are more international.

2. The debts formed by sovereign guaranteed financing belong to the Chinese government or sovereign foreign debts, and are included in the centralized management of sovereign foreign debts by the Ministry of Finance.

3. Fiscal guarantee refers to the financial guarantee provided by the financial agency to the users of the on-loan when they re-lend loans from foreign governments or international economic organizations approved by the State Council to ensure the repayment of their debts with financial credit. An economic act for the performance of obligations or other obligations, and a legal means to ensure the realization of creditor's rights.

Extended reading: How to buy insurance, which one is better, and step-by-step instructions to avoid these "pitfalls" of insurance