Sinosure

Sinosure, formally China Export & Credit Insurance Corporation, is a Chinese state-owned policy-oriented insurance institution focused on supporting the country's foreign trade and overseas investment. Established in December 2001, it was formed by combining the Export Credit Insurance Department of the People's Insurance Company of China with the export credit insurance section of the Export-Import Bank of China. Its creation followed China's accession to the World Trade Organization and reflected the government's intention to provide domestic exporters with protection against risks that commercial insurers might not be willing or able to assume. The company primarily serves Chinese exporters, contractors, investors, banks and other participants in cross-border transactions. Its principal role is to insure receivables and investments against commercial, credit and political risks. Depending on the product, covered risks can include buyer default, insolvency, non-payment, restrictions on currency conversion or remittance, expropriation, nationalization, sovereign breaches of contract and war or political disturbance. Through these instruments, Sinosure helps Chinese companies obtain financing, extend credit to overseas buyers and undertake projects in markets where country or counterparty risk is significant. Its business spans short-term export credit insurance, medium- and long-term export credit insurance, overseas investment insurance, bonds and guarantees, debt and capital recovery, and credit assessment. Short-term policies generally support ordinary trade in goods and services, while longer-tenor policies are more relevant to capital goods, infrastructure, engineering contracts and other transactions with extended payment periods. Investment insurance is aimed at Chinese companies investing abroad, including large state-owned enterprises and other firms pursuing international expansion. Sinosure also supports small and medium-sized enterprises; the reference material notes that coverage has been available since 2005 to smaller exporters with annual export volumes below US$2 million. Sinosure is not positioned as a conventional commercial insurer. It operates as a policy-oriented state institution, using insurance capacity and related services to advance national trade and investment objectives. Chinese companies borrowing from domestic banks may use Sinosure coverage to reduce lender exposure and improve access to trade finance. The company has also entered cooperation arrangements with international financial institutions, including a March 2011 agreement with J.P. Morgan under which Sinosure provided exposure coverage connected with financial services for exporters. The institution has assumed substantial political risk on behalf of Chinese enterprises. The 2011 uprising in Libya generated claims exceeding US$1 billion in connection with investments by 13 Chinese state-owned enterprises, illustrating both the scale of overseas projects supported by Sinosure and the potential cost of sovereign and civil-disorder risks. In May 2011, the Chinese government announced a US$3.1 billion capital injection intended to strengthen the financial position and commercial viability of financial institutions including Sinosure. The company is also a member of the Berne Union, the international association of credit and investment insurers. By at least 2019, Sinosure was reported to insure hundreds of billions of dollars of trade annually, with approximately 80% of its activity attributed to short-term export credit insurance. Reference material also reports cumulative support since 2001 for exports and investments valued at approximately US$290 billion and lending of about RMB570 billion. These figures are historical descriptions rather than a current financial statement. Sinosure's continuing strategic role is to provide risk protection, credit enhancement and policy support for Chinese companies participating in international commerce and overseas investment.

Sinosure was created in December 2001 as China's dedicated policy-oriented export credit insurance institution. Its formation combined the Export Credit Insurance Department of the People's Insurance Company of China with the export credit insurance section of the China Export & Import Bank. The institutional merger followed China's entry into the World Trade Organization and was intended to give Chinese exporters and overseas investors a specialized mechanism for managing risks associated with international commerce. From its creation, Sinosure's mandate extended beyond ordinary commercial insurance. It was designed to support national trade and investment policy by protecting Chinese companies against commercial default, credit deterioration and political events that could interrupt payment or destroy the value of overseas assets. This role was particularly important for high-value-added goods, major engineering contracts, infrastructure projects and overseas investments requiring bank financing or long repayment periods. Sinosure gradually broadened access to its services. In addition to large state-owned enterprises and major exporters, it began supporting smaller exporters, including firms with annual export volumes below US$2 million, from 2005. Its coverage helped companies offer credit to foreign buyers and helped Chinese banks lend against insured receivables. The company also developed related services, including bonds and guarantees, debt and capital recovery, credit assessment and support for export finance. The institution's exposure to country risk became especially visible in Libya in 2011. The uprising and resulting political disruption affected investments by 13 Chinese state-owned enterprises, producing claims reported at more than US$1 billion. The episode illustrated the importance and cost of Sinosure's political-risk function. In the same year, the Chinese government announced a US$3.1 billion capital injection as part of an effort to improve the financial strength and commercial viability of relevant financial institutions. Sinosure has also sought cooperation with international financial institutions. In March 2011, it reached an arrangement with J.P. Morgan under which the insurer supported financial services for exporters and covered the bank's exposure. Such arrangements demonstrate how Sinosure's guarantees can operate alongside commercial lenders rather than merely providing direct insurance to exporters. The company is a member of the Berne Union, reflecting its participation in the international credit and investment insurance community. Historical reference material states that, by at least 2019, Sinosure insured hundreds of billions of dollars of trade annually and that roughly 80% of its activity was short-term export credit insurance. The same material reports cumulative support since establishment for approximately US$290 billion of exports and investments and about RMB570 billion of lending. These figures should be understood as reported historical indicators, not current audited results. Sinosure remains a state-owned enterprise administered by China's Ministry of Finance. Its continuing purpose is to reduce the risks faced by Chinese firms operating internationally, improve their access to financing and support the country's export and overseas investment objectives. Its product range combines conventional credit protection with policy-driven coverage for political and sovereign risks that may be difficult to obtain from purely commercial insurers.

• 2019

  Short-term export insurance remains dominant

  [1]Sinosure - Wikipediaen.wikipedia.org

  Reference material describes annual insured trade in the hundreds of billions of dollars, with approximately 80% attributed to short-term export credit insurance.

• 2011

  Government announces capital injection

  [1]Sinosure - Wikipediaen.wikipedia.org

  China announces a US$3.1 billion capital injection associated with strengthening the viability of financial institutions including Sinosure.

• 2011

  Libya-related political risk produces major claims

  [1]Sinosure - Wikipediaen.wikipedia.org

  The Libya uprising leads to claims exceeding US$1 billion relating to investments by 13 Chinese state-owned enterprises.

• 2011

  J.P. Morgan cooperation agreement

  [1]Sinosure - Wikipediaen.wikipedia.org

  Sinosure agrees to support exporter-related financial services with J.P. Morgan and cover the bank's exposure.

• 2009

  Reported export insurance reaches US$116 billion

  [1]Sinosure - Wikipediaen.wikipedia.org

  Sinosure insures approximately US$116 billion in exports during the year.

• 2005

  Coverage expands to smaller exporters

  [1]Sinosure - Wikipediaen.wikipedia.org

  The company begins serving smaller exporters, including enterprises with annual export volumes below US$2 million.

• 2001

  Sinosure is established

  [1]Sinosure - Wikipediaen.wikipedia.org

  Sinosure is founded in December through the consolidation of export credit insurance operations from the People's Insurance Company of China and the Export-Import Bank of China.

A policy-oriented state insurance institution supporting Chinese exports, overseas investment and access to trade finance by absorbing commercial, credit and political risks.

• Export credit insurance

  Short-term export credit insurance

  Short-term export credit insurance protects Chinese exporters against non-payment by overseas buyers and related commercial or credit risks in ordinary trade transactions. It can help exporters extend payment terms with greater confidence and can support bank financing by improving the quality of insured receivables. The reference material identifies this as Sinosure's largest activity, representing approximately 80% of its business by at least 2019.

• Export credit insurance

  Medium- and long-term export credit insurance

  Medium- and long-term export credit insurance is designed for transactions with extended payment periods, including high-value-added goods, capital equipment, engineering contracts and infrastructure-related exports. Coverage can address commercial and credit risks while helping Chinese exporters and their lenders manage the longer exposure associated with large international projects.

• Investment insurance

  Overseas investment insurance

  Overseas investment insurance protects Chinese companies investing abroad against political and sovereign risks. Covered events may include restrictions on currency conversion or remittance, expropriation and nationalization, sovereign breaches of contract, war and other political disruptions. The product is particularly relevant to large overseas projects and investments by state-owned enterprises, although Sinosure's broader mandate also covers other Chinese firms.

• Guarantee services

  Bonds and guarantees

  Sinosure provides bond and guarantee business connected with international trade and investment. These instruments can help Chinese companies meet contractual, financing or project-related requirements when operating abroad. The reference material identifies bonds and guarantees as part of the company's broader policy-oriented service portfolio, but does not specify individual product names or current terms.

• Recovery services

  Debt and capital recovery

  Debt and capital recovery services support the collection or recovery of insured claims, overdue receivables and investment proceeds. They complement Sinosure's insurance activities by addressing situations in which a buyer, borrower, government counterparty or overseas project fails to perform. Detailed service structures and eligibility conditions are not specified in the supplied reference material.

• Credit information

  Credit assessment

  Credit assessment services provide analysis relevant to overseas buyers, counterparties, markets and transactions. Such information supports underwriting and helps exporters, banks and investors evaluate commercial and country risk. The supplied material lists credit assessment as a Sinosure business but does not provide detailed methodology or a separate product catalog.

• 2008

  Former Sinosure General Manager Tang Ruoxin sentenced to 14 years for bribery

  Tang Ruoxin, former general manager of China Export & Credit Insurance Corporation (Sinosure), was removed from office in 2008 for violations of laws and regulations; it was later established that he accepted huge amounts of property and abused his power. In 2009 he was expelled from the Communist Party and dismissed from public office, and in 2010 he was sentenced to 14 years in prison for bribery and abuse of power by personnel of a state-owned company.

  Source

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• 2011

  Strengthen capital supportStrategy

  Background

  The government sought to improve the financial strength and commercial viability of policy-oriented financial institutions.

  Action taken

  China announced a US$3.1 billion capital injection associated with Sinosure and related financial institutions.

  Aftermath

  The measure was intended to reinforce the institution's capacity to support exporters and absorb insured risks.

  Announced capital injection. US$3.1 billion announced (May 2011)

  Source

• 2011

  Enter exporter-finance cooperation with J.P. MorganOther

  Background

  Exporters require access to bank financing as well as insurance protection for overseas receivables and projects.

  Action taken

  Sinosure agreed to support a broad range of J.P. Morgan financial services for exporters and cover the bank's exposure.

  Aftermath

  The arrangement illustrated Sinosure's role as a credit enhancer working with commercial banks.

  Source

• 2005

  Extend export credit protection to smaller enterprisesStrategy

  Background

  Smaller exporters often have less capacity to absorb commercial and political risks or obtain affordable private insurance.

  Action taken

  Sinosure expanded coverage to exporters with annual export volumes below US$2 million.

  Aftermath

  The company's policy role broadened beyond major state-owned enterprises and large exporters.

  Source

• 2001

  Create a dedicated policy-oriented export insurerStrategy

  Background

  China's WTO accession and expanding international trade increased the need for specialized protection against overseas buyer, country and political risks.

  Action taken

  The government consolidated export credit insurance operations from PICC and the Export-Import Bank of China to establish Sinosure.

  Aftermath

  Sinosure became China's principal state-backed provider of export credit insurance and related support for overseas investment.

  Source

1. 1Sinosure - Wikipediaen.wikipedia.org
2. 2Sinosure official websitesinosure.com.cn
3. 3产品服务sinosure.com.cn
4. 4公司简介sinosure.com.cn
5. 5信保动态：商务部、中国出口信用保险公司联合印发通知sinosure.com.cn
6. 6Former Sinosure General Manager Tang Ruoxin sentenced to 14 years for briberychinanews.com.cn
7. 7Former Sinosure General Manager Tang Ruoxin sentenced to 14 years for briberymagazine.caixin.com