You may worry about the credibility of your potential partners in China. You may want to know more about them. Talk to us. We may help you on that by providing a deep investigation report.
Business Fraud
Many foreign companies who are trading with Chinese companies heard about stories of business fraud. Some of them experienced this. They received inquiry from a Chinese customer who intended to purchase a big amount of their products. With the invitation from this Chinese customer, the foreign company came to China and negotiated the contract. It seemed very easy to reach the agreement and signed the contract. However there was no further progress after they went back. What was going wrong?
When talking to those foreign companies, we found out that they were all asked to invite the Chinese customers for an expensive lunch or dinner. It looked natural to celebrate for a big contract. So they paid, even thought the bill was really a lot. Some of them were asked to buy expensive gifts for the Chinese customers. The total amount for the lunch or dinner and gifts could reach USD3,000 in average.
This was how that type of Chinese customers makes earnings. The Chinese customers had an agreement with the restaurant where they had lunch and dinner. They took the money out from the restaurant after the foreign companies paid the bill. They received 5 to 10 foreign companies a day in average and had 5 to 10 lunches and dinners. It sounds ridiculous but it was true. They hired part time students who can communicate in foreign languages to seek foreign companies and send inquiry emails. Hundreds of emails were sent out everyday. So it's understandable that they could receive some foreign guests everyday.
How to Avoid
How to avoid this? Tell us if you receive any strange inquiries from a new customer. We can investigate its business credibility by visiting them and collecting official information about this company. You can wait for the investigation result and then decide to visit or not based on our suggestions. A real customer normally has a well business record.
This company credit investigation is also used when entering an acquisition and establishing a joint venture.
Please check out the working procedure with us or contact us for more information.