Sinosure Philippines: How Importers Navigate Challenges in Trade with China

China stands as the Philippines' largest trading partner, serving as the primary source of imports and the third-largest export market. Despite heightened tensions, bilateral trade between the two countries continues to develop.

In 2022, China Customs data revealed that bilateral trade between the Philippines and China reached nearly $87.7 billion, showcasing an average annual growth of 7.1%.

Notably, Philippines imports from China amounted to $29.8 billion in 2022, as per the United Nations COMTRADE database. In the first nine months of 2023, these imports totaled $21.7 billion, according to the Philippine Statistics Authority.

China's ability to export a lot to the Philippines arises from the global competitiveness of its products. Key commodities include electric motors, iron and steel products, machinery and apparatus, plastics, vehicles, mineral fuels, furniture, shoes, and garments. This diverse range of competitive products strengthens China's role as a significant trade partner for the Philippines.

However, in the uncertainties of global trade, both parties in the Philippines and China seek assurance in financial transactions. This is where Sinosure China's export credit insurance comes into play.

Sinosure provides export insurance for Chinese suppliers dealing with Philippines buyers. Knowing that they are covered by export credit insurance, Chinese businesses can navigate the challenges of cross-border transactions with the assurance that they will receive payment for their goods, even in the face of unexpected circumstances.

Philippine importers, on the other hand, benefit from the flexibility provided by Sinosure's export credit insurance. This financial tool allows them to explore deferred payment options, extending their payment terms to Chinese suppliers for a period up to 120 days. This not only supports their cash flow management but also opens up opportunities for strategic financial planning.

To actively participate in contracts backed by Sinosure's guarantee, Philippine buyers undergo a thorough investigation process. This evaluation is designed to assess the importers' financial stability, creditworthiness, and overall capability to fulfill contractual obligations.

The result of the investigation is the establishment of the Sinosure credit limit. This limit represents the maximum trade loans that Sinosure is willing to guarantee for a particular importer.

If you're seeking a Sinosure credit limit for your Philippine-based organization's trade and imports, the application process doesn't have to be complicated. Our Sinosure consulting services and expertise streamline the entire procedure, enhancing your international trade outcomes. Schedule a consultation to learn more.