What is SINOSURE?

Sinosure, meaning the China Export & Credit Insurance Corporation, is a state-owned national export credit agency (ECA) based in China. It functions to provide insurance coverage for export credit operations conducted by Chinese manufacturers. With Sinosure's guarantee, suppliers in China can offer deferred payment terms to their overseas importers. Thereby, Sinosure supports China's trade ecosystem and facilitates global trade.

For importers worldwide, the significance of Sinosure credit insurance lies in its ability to facilitate their business development. By engaging with Sinosure, companies can purchase goods from Chinese suppliers and negotiate contracts on export credit terms.

Under the Sinosure guarantee, Chinese suppliers commonly provide deferred payment terms to their overseas buyers, typically ranging from 90 to 120 days.

It means that importers do not have to make upfront payments. This flexibility allows them to manage their cash flow and conduct ongoing financial operations while awaiting the arrival of goods from China.

Today, businesses from over 100 countries participate in contracts under Sinosure insurance coverage. From 10,000 to 50,000 importers in each country are accredited by Sinosure.

A challenge in international trade runs around working capital. Importers want to receive goods from China with deferred payment, while Chinese manufacturers want to get a full prepayment from their overseas buyers. The main hurdle is the risk of non-payment, often due to the lack of experience in assessing buyer creditworthiness.

Sinosure addresses this issue by providing Chinese exporters with insurance against buyer non-payment. It allows suppliers to confidently offer deferred payment terms and increase trade turnover with foreign partners. Sinosure's insurance covers political and commercial risks, ensuring a safety net against various uncertainties.

Today, Sinosure actively supports the export endeavors of over 250,000 Chinese factories. With a valid Sinosure insurance policy, these factories are open to extend credit terms to their international partners, fostering the growth and sustainability of China's export sector.

Sinosure holds the 1st place among national ECAs globally. According to the Berne Union, the total insured amount of Sinosure has been continuously ranked top among ECA members since 2015.

According to the 2022 Sinosure Annual Report, the core Sinosure's product, short-term export credit insurance accounted for $745.16 billion, equivalent to 20.7% of China's total exports in that year. The total amount insured across all Sinosure products and services reached an impressive $899.58 billion.

Sinosure insurance company is immensely popular among Chinese factories for its comprehensive approach.

The non-profit, state-owned nature of Sinosure, by definition supported by the Government, instills the highest level of trust among manufacturers of all sizes in China.

Sinosure maintains branches and offices across all provinces and its service network now covers the whole territory of China. It ensures easy access to its services for factories, offering support when needed.

Headquartered in Beijing, Sinosure has the following branches: Anhui, Chongqing, Fujian, Guangdong, Guangxi, Hebei, Heilongjiang, Henan, Hubei, Hunan, Jiangsu, Jiangxi, Liaoning, Niangin, Ningbo, Shaanxi, Shandong, Shanghai, Shanxi, Shenzhen, Sichuan, Tianjin, Xiamen, Xinjiang, Yunnan, and Zhejiang.

Sinosure actively conducts training programs, demonstrating its commitment to educating Chinese suppliers on the effective use of export insurance tools and resources.

Finally, the active participation in trade shows and industry events worldwide, with representatives engaging with exporters and importers, strengthens Sinosure's presence in the global trade landscape.

Sinosure's services extend beyond factories. Many financial institutions such as ICBC, Agricultural Bank of China, China Construction Bank, and Export-Import Bank of China cooperate with Sinosure and provide trade financing under its guarantee.

If your supplier faces working capital challenges to offer deferred payments, they can approach their bank or another financial institution that provides such services and secure financing for their orders.

In the next article, we discuss how to work with Sinosure credit insurance.


Back to Sinosure Q&A →