Sinosure: Facilitating Deals Between Reputable Foreign Companies and Chinese Exporters

The China Export & Credit Insurance Corporation (Sinosure) is the sole policy-oriented export credit insurance institution in China. Its purpose is to support China's foreign trade and overseas investments, helping enterprises mitigate overseas risks. Established in 2001, the same year China joined the WTO, it is a state-owned policy insurance company. It holds an international rating of S&P A+ (consistent with China's sovereign rating).

Its core businesses primarily include:

(1) Export Credit Insurance

• Short-term Export Credit Insurance: Covers export payment risks within a credit period of 1 year (e.g., buyer bankruptcy, default, political risks).

• Medium- and Long-term Export Credit Insurance: Supports medium- and long-term projects such as large mechanical and electrical equipment, ships, and engineering contracts (credit period of 1-15 years).

• Special Insurance: Targets special risks like overseas investments and leasing.

(2) Overseas Investment Insurance

• Protects Chinese enterprises' Outward Direct Investment (ODI) against political risks, including:

  • War/Civil Unrest

  • Expropriation/Nationalization

  • Currency Exchange Restrictions

  • Government Breach of Contract

(3) Domestic Trade Credit Insurance

• Covers accounts receivable risks between domestic enterprises (buyer credit risk).

(4) Guarantee Services

• Provides enterprises with bid bonds, performance bonds, etc., enhancing their international bidding capabilities.

(5) Information & Consulting Services

• Offers global enterprise credit investigations and industry risk analysis reports.

The key differences between Sinosure and commercial insurance companies are:

1. Risk Coverage: Sinosure can underwrite high-risk/long-term credit projects; ordinary commercial insurance companies can only cover low-risk, conventional business.

2. Premium Rates: Sinosure generally offers lower premium rates; ordinary commercial insurance companies have higher rates.

3. Credit Assessment Capability: Sinosure has a greater capability to assess the creditworthiness of foreign enterprises; ordinary commercial insurance companies have weaker assessment capabilities.

Its application process primarily involves:

1. Risk Assessment: Log in to Sinosure's official website (//www.sinosure.com.cn) and submit buyer/project information. Sinosure then assesses the risk.

2. Contract Signing: Determine the coverage scope, premium rates, and compensation ratio.

3. Premium Payment: Pay according to the contract (policy subsidies may be applied for).

4. Loss Notification: If a loss occurs, submit claim materials.

5. Claim Review: After investigation, Sinosure will pay compensation proportionally.

For reputable foreign import companies with strong qualifications and a willingness to transact with our company, if you genuinely encounter working capital needs, please feel free to contact us. Our company can assist you in applying for support to facilitate the deal.

Juan Hu

Marketing Manager

Email: juan.hu@liretecgroup.com