SINOSURE — China Export & Credit Insurance Corporation

Sinosure is a state-owned Chinese export credit insurance corporation. Sinosure insures Chinese suppliers (exporters) against credit and political risks in international trade. If the buyer's company becomes financially insolvent, Sinosure guarantees the supplier payment under the contract.

Under the guarantee, Sinosure insured Chinese suppliers can offer deferred payment terms for 90, 120, or 180 days.

Lack of working capital is one of the main problems of international trade. Buyers want to receive goods from China with deferred payment, while Chinese manufacturers want to receive a full prepayment from the customer. The main reason for Chinese suppliers not wanting to provide deferred payment is the risk of non-payment on the side of overseas buyers. Very often, Chinese manufacturers do not have enough experience to independently verify the creditworthiness of their buyers and decide whether or not to grant a deferral. And if the buyer is unable to pay, the resulting credit risks can ruin the supplier's business.

Sinosure helps solve this problem by providing Chinese exporters with insurance against the buyer's non-payment. If there is a guarantee, suppliers are willing to grant deferrals, taking advantage of the opportunity to increase trade turnover with their foreign partners.

That means that if your company has a Sinosure credit limit, you can get a deferred payment from your supplier for a period of 90, 120 or even 180 days.

Many financial institutions in China cooperate with Sinosure and provide trade financing under Sinosure insurance. If your supplier does not have enough working capital to offer you a deferred payment, they can contact their bank or other financial institution that provides this type of service and get financing for the orders.

Sinosure was founded in 2001 through the merger of the export credit insurance division of the PICC Corporation (People's Insurance Company of China) and the export credit insurance division of the Export-Import Bank of China. As an independent legal entity, SINOSURE was officially launched on December 18, 2001, and its service network now covers all of the Chinese provinces.

In 2020 Sinosure insured more than $700 billion export credit amount for 140 000 Chinese exporters.

Sinosure, like similar export credit agencies, provides coverage against political, commercial, and credit risks. The Sinosure portfolio of insurance instruments includes short -, medium- and long-term export credit insurance, as well as foreign investment insurance for Chinese companies.

The insurance covers political risks, such as sanctions, restrictions on money transfers, expropriation and nationalization, violation of sovereignty, and military actions;

Credit risks, such as the risk of non-payment by the client due to financial insolvency, bankruptcy, fraud, and other commercial risks.

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


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