Don’t be the rabbit Many Chinese companies that provide credit to foreign businesses do so because their invoices are insured by Sinosure. Sinosure is a massive China-based government-owned 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.
My law firm’s international dispute resolution attorneys have worked with a number of companies in dealing with Sinosure and those experiences have convinced us of the following:
1. If you are not paying your Chinese supplier because you are having cash flow problems, Sinosure will not listen.
2. If you are not paying your Chinese supplier because you are a deadbeat, Sinosure definitely will not listen.
3. 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, but in the end Sinosure usually does not listen.
4. Instead of listening, Sinosure and its attorneys (in whatever country they may be in) will seek to make your life miserable by threatening you and by doing what they can to embarrass you.
5. Sinosure is not terribly smart and this is particularly true outside China. Handled properly, they can almost always be defeated.
What have your experiences been with Sinosure?