what we think

By Chen Yun, Maarten Roos

International buyers purchasing from exporters in China may be familiar with SINOSURE, the famous China Export & Credit Insurance Corporation. SINOSURE provides credit insurance to protect exporters in China against non-payment by international buyers and other commercial risks. Under the insurance, the exporter in China can file a claim with SINOSURE against the international buyer. If SINOSURE deems the claim valid, then SINOSURE will file a claim against the buyer.

The consequences can be far-reaching. For example, other exporters in China may refuse to sell to the international buyer. Moreover, we have also seen instances where SINOSURE will retain a law firm to file a claim in the international buyer’s home jurisdiction.

Many international buyers assume that if they are contractually or factually justified, the best option is to take a wait-and-see approach and respond if / when SINOSURE files a claim. In practice, this assumption frequently proves incorrect. Based on recent matters we have handled, this article sets out key considerations on how early and evidence-driven engagement at the PRC level can materially influence the handling and outcome of SINOSURE-related disputes.

Why Unresolved SINOSURE Claims Matter

International buyers often ask whether SINOSURE maintains a "blacklist" that lists companies which its Chinese customers cannot supply. No such public or formal blacklist exists. Nevertheless, pending or unresolved claims are recorded within SINOSURE’s internal systems, and these records may result in tangible commercial consequences.

In practice, unresolved claims may result in:

• continued follow-up by law firms or collection agents acting on SINOSURE’s behalf;
• increased scrutiny, additional conditions, or higher costs when exporters in China seek to obtain or renew SINOSURE insurance involving the same international buyer; and
• indirect reputational exposure for the buyer within SINOSURE’s internal assessment framework.

Where counterparties in China encounter difficulties in securing or renewing insurance due to unresolved disputes, transaction costs and operational friction tend to increase. Over time, this may affect the efficiency and stability of the buyer’s broader China-facing supply chain.

Case Overview: Claims Based on Fabricated Transactions

In practice, SINOSURE-related disputes most commonly arise from quality or performance issues. However, cases involving no genuine underlying transaction are also encountered.

In one recent case that we handled, a U.S.-based client was subjected to repeated collection attempts by a US law firm that SINOSURE had retained. Despite multiple substantive responses from international buyer’s counsel, the collection attempts did not cease.

After our engagement, a detailed review of the materials revealed several red flags:

• multiple exporters in China asserted claims against the same international buyer; and
• the alleged contracts, invoices, and bills of lading were falsified. In addition, the purported email correspondence was fabricated, and despite the absence of any genuine transaction, the exporters seem to have completed Customs declarations and may have even applied for export tax rebates.

Such fact patterns are not uncommon in practice. In some cases, exporters obtain customer information and fabricate documentation to support customs clearance and export tax rebate claims.

A Critical Point: Engagement with SINOSURE Is Not an "Explanation Exercise"

Many international buyers approach SINOSURE by attempting to explain the situation or clarify misunderstandings. From a practical standpoint, this is rarely sufficient.

SINOSURE is not a purely mechanical institution. It maintains internal review and assessment functions, and whether a dispute gains traction internally often depends on how the matter is presented. Effective engagement requires:

• dispute-specific analysis;
• clearly articulated factual positions; and
• an evidence-driven structure, rather than general explanations.

In practice, submissions to SINOSURE should be prepared with a level of rigor comparable to responding to formal legal proceedings, supported by relevant and contemporaneous documentary evidence.

A Practical, Non-Litigious Response Path

In the case described above, we adopted a non-litigious but highly structured approach that involved:

• direct engagement with SINOSURE, focusing on document authenticity, the absence of any genuine commercial relationship, potential insurance-related misconduct, and independent verification of shipment evidence, particularly bills of lading; and
• formal correspondence with the exporters, addressing the lack of factual basis for the claims and identifying the associated legal risks.

With well-organized and credible evidence, the matter was resolved without escalation. SINOSURE recognized that the claims were arguable at best and ceased further follow-up, and the collection efforts in the U.S. stopped accordingly.

Key Takeaways for International Buyers

• Ignoring SINOSURE-related disputes rarely leads to resolution, even where claims appear unfounded.
• Difficulties faced by Chinese sellers in obtaining or renewing SINOSURE insurance may ultimately affect commercial cooperation and supply-chain stability.
• Unresolved disputes may expose international buyers to ongoing collection pressure and indirect reputational risk.

• PRC-based, dispute-specific, and evidence-driven engagement is often decisive.
• Early intervention preserves the greatest room for control; once matters escalate, available options tend to narrow significantly.

In SINOSURE-related matters, outcomes are rarely determined by attitude alone. They are shaped by judgment, structure, and the quality of evidence. It is also crucial that the issue is addressed early on, and at the appropriate level.

R&P's dispute resolution team regularly advises international buyers on disputes, including claims arising from alleged non-payment, quality disputes, and fabricated or non-existent transactions. Drawing on extensive PRC-level experience, the team supports clients in evidence-driven engagement with counterparties to contain risk and achieve early, practical resolution. For tailored advice on responding to or proactively managing SINOSURE claims, please contact Chen Yun (chenyun@rplawyers.com) or reach out to your regular R&P contact.