Sinosure (China Export & Credit Insurance Corporation) is China's only policy-oriented export credit insurance institution, established in 2001 to support Chinese enterprises' foreign trade and investment through policy-based insurance services. Its core business includes short-term export credit insurance, medium- and long-term export credit insurance, overseas investment insurance, and guarantees. It mainly covers political risks (such as war and exchange restrictions) and commercial risks (such as buyer bankruptcy and refusal to accept goods). Usage scenarios: When exporters adopt non-letter of credit settlement methods such as open account (OA) or documents against acceptance (D/A), they can insure with Sinosure to mitigate foreign exchange collection risks; banks can also provide financing to exporters based on Sinosure policies. Precautions: Sinosure underwriting usually requires exporters to insure all or a certain proportion of their export business, and a credit investigation of the buyer must be conducted in advance; the compensation ratio is generally 80%-90%, not full compensation. Differences from other terms: Sinosure is a policy-oriented insurance institution, different from commercial insurance companies (such as Ping An of China); its rates are lower but approval is stricter. It is also different from a letter of credit (L/C), which is bank credit, whereas Sinosure provides insurance protection and does not directly guarantee payment.
📝 Examples
1. Our company recently signed an open account contract worth USD 500,000 with a Brazilian buyer. To guard against foreign exchange collection risks, I insured with Sinosure for short-term export credit insurance. If the buyer refuses to accept the goods or goes bankrupt, Sinosure will compensate proportionally. (Note: Using Sinosure to mitigate commercial risks in open account business.)
2. Because the other country has strict foreign exchange controls, the bank suggested we insure with Sinosure's medium- and long-term export credit insurance to cover political risks, which will also make it easier to obtain the bank's export credit support. (Note: In countries with high political risk, Sinosure insurance helps obtain financing.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
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