Many Chinese companies that provide credit to foreign businesses do so because their invoices are insured by Sinosure. Sinosure is a massive China-based export and credit insurance company.
Foreign companies sometimes face Sinosure when they have failed to pay their Chinese supplier for product. When that happens, Sinosure usually steps in and threatens to sue.
We have worked with a number of companies in dealing with Sinosure and those experiences, coupled with numerous consultations with Chinese lawyers who know and understand Sinosure, have convinced us that the following is typically true:
- Sinosure is not unreasonable. If you are not paying your Chinese supplier because your supplier gave you bad product, Sinosure will “listen.”
- If you are not paying your Chinese supplier because you are having cash flow problems, Sinosure will not listen.
- If you are not paying your Chinese supplier because you are a deadbeat, Sinosure definitely will not listen.
- If you are not paying your Chinese supplier because your Chinese supplier gave you bad product, you should do whatever you can to provide Sinosure with documentary proof of the bad product and documentary proof of the damages you have incurred due to the bad product.
What have your experiences been with Sinosure?